You have registered for GST. Done, right? Well, not quite. GST registration is only the beginning. From here, GST becomes part of your day-to-day business. Your invoices change. Your bookkeeping changes. And yes, the BAS starts making regular appearances on your calendar.
It can sound like a lot. But once you know what to expect, it is much easier to manage. So, what actually happens after you register for GST?
1. You start charging GST
Once you are registered, you generally need to charge GST on your taxable sales. The standard GST rate is 10%.
For example, if you charge a customer $1,000 for a taxable service, you would generally charge $1,100 including GST. That extra $100 is not really your income. You are collecting it on behalf of the ATO. This is something worth remembering. Don’t treat GST collected as your business money. It may need to go back to the ATO when you lodge your BAS.
2. Your invoices need to change
Once you are GST registered, your invoices need to reflect GST correctly. For taxable sales, you generally need to issue a tax invoice when required. The GST amount should be clearly shown.
This is especially important for business customers. They may need your tax invoice to support their own GST claims. So before sending your next invoice, check your invoicing software. Make sure your GST settings are switched on. It is a small thing. But getting it wrong repeatedly can create a much bigger bookkeeping problem later.
3. You can claim eligible GST credits
This is the part many business owners look forward to. When you buy things for your business, you may have GST included in the price. If the purchase meets the requirements, you may be able to claim that GST as a GST credit.
For example, you buy business equipment for $5,500, including $500 GST. If the purchase is eligible and you have the required records, you may be able to claim the $500 GST credit. But don’t assume every purchase qualifies. Personal expenses are different. And you need proper records to support your claim.
4. You start lodging BAS
This is probably the biggest change after GST registration. You will need to lodge a Business Activity Statement (BAS). Your BAS is where you report your GST. You generally report the GST you collected on sales and the GST credits you can claim on eligible purchases.
The difference is what determines whether you have GST to pay or a refund. Most GST-registered businesses report quarterly, although monthly and annual reporting can apply in certain circumstances. And yes, those BAS due dates need to go into your calendar.
5. You need to keep better records
GST registration makes good bookkeeping even more important. You need records that support your sales, expenses and GST calculations. Keep your tax invoices. Keep your receipts. Keep your sales records. Keep your GST-related records.
The ATO generally requires GST records to be kept for five years. This is where good accounting software can save you a lot of time. The better your records are, the easier your BAS becomes.
6. Keep an eye on the GST you collect
Here is a simple habit that can help. When a customer pays you GST, remember that the GST portion may not belong to you. For example, you collect $1,100 from a customer. If $100 is GST, don’t mentally treat the full $1,100 as your available business income.
Some businesses choose to keep the GST collected in a separate bank account. This can make the eventual BAS payment much less painful. Because there is nothing worse than reaching BAS time and realising the GST has already been spent.
7. Check your BAS before lodging it
Don’t just click “Lodge” because the software says everything is ready. Take a few minutes to check the numbers. Compare your sales with your accounting records. Check your GST on purchases. Make sure your tax invoices and other records are in order. Then check the amount payable or refundable. A quick review can help catch mistakes before they become a problem.
8. Don’t forget the BAS payment
Lodging the BAS is only half the job. If you have GST to pay, you also need to pay it by the due date. The due date for lodging and paying is shown on your BAS. So don’t leave the payment until the last minute. Your accountant or BAS agent can help with the lodgement. But the responsibility for the business obligations still matters.
GST registration changes how you run your business
Registering for GST is not just ticking another box with the ATO. It changes how you invoice. It changes how you record purchases. It changes how you manage your cash flow. And it gives you another regular deadline to keep track of. But it doesn’t have to become a headache. Set up your accounting software properly. Keep your records organised. Put your BAS dates in your calendar. And keep the GST you collect in mind when managing your cash.
Do those things from the beginning and GST becomes part of your normal bookkeeping routine. Rather than something you panic about every few months.
One final tip: if you have just registered for GST, check the effective date of your registration carefully. That date tells you when your GST obligations start. The ATO confirms your GST registration details and effective date after registration. Getting that date right from day one can save you a lot of cleanup later.
