Quick questions on GST and the Sole Trader - TCE Accounting (Tasmania)

1short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is the business activity statement?

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A registered sole trader reports GST to the ATO on a business activity statement (BAS), usually each quarter. The BAS reports total GST collected on sales and total input tax credits (GST paid), and the net is paid to, or refunded from, the ATO. The GST clearing account in the ledger is the running record that feeds this figure: its credit balance at quarter end is the amount owing. After the BAS is lodged and settled, the clearing account returns to nil ready for the next period.

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