After claiming input tax from the Comptroller, you must pay your supplier within 12 months of the due date of payment.

Requirement to repay input tax

As input tax is claimed according to the date of the tax invoice or import permit, you may not have paid your supplier at the point of claiming input tax.

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.

Example 1: No payment made to supplier

Date of tax invoice/ time of supply: 1 Jan 2022
Amount to be paid: $107 ($100 + GST $7)
Due date of payment: 31 Mar 2022
Prescribed accounting period in which the input tax was claimed: 1 Jan 2022 to 31 Mar 2022

You fail to pay your supplier as at 1 Apr 2023 (i.e. after 12 months from due date of payment). You need to repay the input tax claimed to the Comptroller of GST.

Adjustments to GST F5 for the prescribed accounting period of 1 Apr 2023 to 30 Jun 2023:

  • Total value of taxable purchases (Box 5): Reduce by $100
  • Input tax claimed (Box 7): Reduce by $7

Example 2: Partial payment made to supplier

Date of tax invoice/ time of supply: 1 Jan 2022
Amount to be paid: $107 ($100 + GST $7)
Due date of payment: 31 Mar 2022
Prescribed accounting period in which the input tax was claimed: 1 Jan 2022 to 31 Mar 2022

You have paid $50 but the remaining $57 remained unpaid as at 1 Apr 2023. You need to repay the input tax claimed to the Comptroller of GST at the tax fraction of the unpaid amount.

Input tax to repay = 7/107 x $57 = $3.73

Adjustments to GST F5 for the prescribed accounting period of 1 April 2023 to 30 June 2023:     

  • Total value of taxable purchases (Box 5): Reduce by $53.27 ($57-$3.73)
  • Input tax claimed (Box 7): Reduce by $3.73

Subsequent payment to suppliers

You may subsequently pay your supplier.

You can claim the input tax repaid to the Comptroller if you pay your supplier within five years from the end of the prescribed accounting period during which the input tax was first claimed.

Example 3: Claiming Input Tax After Paying Suppliers

You first claimed the input tax in your GST return for the accounting period ending 31 Mar 2023. 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 claimed.

Subsequently, on 1 Mar 2025, you paid your supplier the full amount owed (i.e. within five years from 31 Mar 2023).

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 1 Jan 2025 to 31 Mar 2025.