BAS and reporting
G1 total sales
G1 on the BAS is the field where you report your total sales for the period, including GST, covering taxable, GST-free and other sales made in the course of your enterprise.
G1 is the first figure in the GST section of the BAS and records your total sales for the reporting period. It includes all sales and income from your business, whether taxable, GST-free or input-taxed, and it is reported including any GST. It is a headline figure used by the ATO to understand the scale of your business and to compare with other data.
The figure at G1 will normally be higher than the amount on which GST is charged, because it contains GST-free and input-taxed sales as well. For example, a business that sells both taxable goods and GST-free exports will include both at G1, but only the taxable sales will produce GST at label 1A. This difference is expected, but you should be able to explain it from your records.
G1 is also relevant to GST turnover and registration. While G1 is not identical to GST turnover, since turnover excludes some items such as input-taxed sales and sales not connected with Australia, the figures help you monitor whether you are approaching the registration threshold of $75,000, or $150,000 for non-profit organisations. Keep an eye on both.
Accounting software typically builds G1 from the tax codes assigned to income transactions. Make sure that all income accounts are coded correctly, including GST-free and input-taxed income. Exclude amounts that are not sales, such as loans, owner contributions and GST refunds. Include cash sales, which are sometimes forgotten, and any sales invoiced through other platforms.
The ATO may compare G1 with your income tax return, bank deposits and data from payment platforms. Large differences without explanation can trigger a review. Reconcile your total sales to your bank account and to your profit and loss report at the end of each quarter. This quick check often catches missing or miscoded transactions.
Keep supporting reports, such as the sales summary and GST report, for five years. The figure at G1 does not by itself determine the GST you pay. That depends on the taxable portion, shown at 1A. This is general information only, so confirm your approach with the ATO or a registered tax professional.
Worked example
In a quarter, Ben's business has taxable sales of $55,000 including GST and GST-free export sales of $15,000. Total sales reported at G1 is $55,000 plus $15,000, which is $70,000. GST at label 1A is only on the taxable sales, so it is $55,000 divided by 11, which is $5,000. The exports sit in G1 but add no GST at 1A.
Practical tips
- Reconcile G1 to your bank deposits and your profit and loss report before lodging.
- Exclude non-sale items such as loans, owner contributions and GST refunds from the figure.
- Be ready to explain the difference between G1 and the GST at 1A, which comes from GST-free and input-taxed sales.