GST reconciliation for BAS – money received

Unsure how to record money received from the ATO / BAS refunds?

It would seem that you are not alone!  This seems to be one of the most common mistakes that we see when working with our clients.


What do I need to do?

When entering the details of any refunds for BAS from the ATO, the amounts need to be entered into the accounting system exactly how they are recorded on the BAS form.


Tips and tricks

  1. These amounts should not be entered as income as they are not!
  2. Record the amounts by following the principles outlined in the example below.


An example of the BAS could be as follows:


Original claim – GST Paid $920; GST claimed $310; PAYG withheld $200


Amount deposited by ATO would be $410


This should be recorded as follows:


DR Bank (money in)                          $410

DR PAYG (liability)                $200

DR GST Claimed (liability)    $310


CR GST Paid (liability)                      $920


This approach reduces the balances of the relevant accounts by the correct amounts in accordance with the BAS statement.



Should you have any concerns/queries, our staff can assist with education/ explanation of accounting principles and correct entering of data to reduce problems down the track.

Our focus is on providing a high quality service to our clients and if we can value add by facilitating greater understanding of the relevant principles, then we’d love to assist.

Please contact us to discuss any queries on 1300 CBAUDIT.


If you are not a current client and would like more information on our services, please contact Matt Williams through [email protected].