How should businesses report their GST obligations as per the ATO Green Book?

Businesses are required to report their Goods and Services Tax (GST) obligations through regular Business Activity Statements (BAS). The BAS serves as a comprehensive tool for businesses to report not only GST but also other tax obligations such as PAYG withholding and PAYG instalments. It provides a structured format that facilitates the accurate reporting and payment of GST collected from sales and GST paid on purchases.

Using the BAS allows businesses to keep track of their tax obligations in a timely manner, ensuring compliance with the Australian Taxation Office (ATO) requirements. The frequency of lodgement can be monthly or quarterly, depending on the business's turnover and registered GST status, which means that businesses can align their reporting with their cash flow and financial management practices.

The other reporting methods, such as annual tax returns or simplified methods, do not adequately capture the ongoing nature of GST obligations required for accurate and timely reporting. This is why the Business Activity Statement is the preferred and correct method for reporting GST.