As claiming of input tax is according to the date of the tax invoice or import permits, you may have claimed input tax before paying your supplier. In such instance, if you do not pay your supplier within 12 months of the due date of payment, you need to repay the input tax claimed to the Comptroller of GST.
An administrative concession is provided for debts that occurred before 1 Jan 2006. You are allowed a 12-month period from 1 Jan 2006 (i.e. up to 1 Jan 2007) before your liability to repay the input tax arises.
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Debt that occurred on or after 1 Jan 2006
Debt that occurred before 1 Jan 2006
If I subsequently pay my supplier
Debt that occurred on or after 1 Jan 2006
The following is an illustration on how the input tax claimed should be repaid to the Comptroller of GST.
- Date of tax invoice/ time of supply: 1 Jan 2011
- Amount to be paid: $107 ($100 + GST $7)
- Due date of payment: 31 Mar 2011
- Prescribed accounting period in which the input tax was claimed: 1 Jan 2011 to 31 Mar 2011
| Scenario |
Adjustments for GST F5 |
Scenario 1 – No payment made
You fail to pay your supplier as at 1 Apr 2012 (i.e. after 12 months from due date of payment).
- You need to repay the input tax claimed to Comptroller of GST.
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For the prescribed accounting period of 1 Apr 2012 to 30 Jun 2012
Total value of taxable purchases (Box 5): Reduce by $100
Input tax claimed (Box 7): Reduce by $7
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Scenario 2 – Partial payment made
You have paid $50 but the remaining $57 remained unpaid as at 1 Apr 2012.
- You need to repay the input tax claimed to Comptroller of GST at the tax fraction of the unpaid amount.
- Input tax to repay = 7/107 x $57 = $3.73
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For the prescribed accounting period of 1 April 2012 to 30 June 2012
Total value of taxable purchases (Box 5): Reduce by $53.27 ($57-$3.73)
Input tax claimed (Box 7): Reduce by $3.73
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Debt that occurred before 1 Jan 2006
The following is an illustration on how the input tax claimed should be repaid to the Comptroller of GST.
- Date of tax invoice/time of supply: 1 Sep 2005
- Amount to be paid: $105 ($100 + GST $5)
- Due date of payment: 1 Nov 2005
- Prescribed accounting period in which the input tax was claimed: 1 Jul 2005 to 30 Sep 2005
| Scenario |
Adjustments for GST F5 |
Scenario 1 – No payment made
You fail to pay your supplier as at 1 Jan 2007 (i.e. after the 12-month period from 1 Jan 2006).
- You need to repay the input tax claimed to Comptroller of GST.
|
For the prescribed accounting period of 1 Jan 2007 to 31 Mar 2007
Total value of taxable purchases (Box 5): Reduce by $100
Input tax claimed (Box 7): Reduce by $5
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Scenario 2 – Partial payment made
You have paid $50 but the remaining $55 remained unpaid as at 1 Jan 2007.
- You need to repay the input tax claimed to Comptroller of GST at the tax fraction of the unpaid amount.
- Input tax to repay = 5/105 x $55 = $2.62
|
For the prescribed accounting period of 1 Jan 2007 to 31 Mar 2007
Total value of taxable purchase (Box 5): Reduce by $52.38 ($55-$2.62)
Input tax claimed (Box 7): Reduce by $2.62
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If I subsequently pay my supplier
After the repayment of input tax to the Comptroller of GST, you may pay your supplier.
- For input tax that was first claimed during a prescribed accounting period that ends on or after 1 Jan 2007, you can claim the input tax if the payment is made within five years from the end of the prescribed accounting period during which the input tax was first claimed.
- For input tax that was first claimed during a prescribed accounting period that ends before 1 Jan 2007, you can claim the input tax if the payment is made within six years from the end of the prescribed accounting period during which the input tax was first claimed.
Example:
You first claimed the input tax in your GST return for the accounting period ending 31 Mar 2010. As you did not pay your supplier within 12 months from the due date of payment, you then repaid the Comptroller of GST the input tax that you originally claimed. Subsequently, on 1 Mar 2012, you paid your supplier the full amount owed (i.e. within five years from 31 Mar 2010).
In this case, you can claim the input tax by declaring the value of purchase in Box 5 and the input tax amount in Box 7 of your GST return for the prescribed accounting period that covers 1 Mar 2012.