GST Credit Time Limit Reminder: Australian Taxation Office Guidelines

The Australian Taxation Office (ATO) issued a notice reminding all GST-registered taxable persons of rules and regulations relating to the GST and fuel tax credits and time limits to claim them. Moreover, the ATO underlined that the GST credits balance the GST taxable persons must pay when submitting a business activity statement (BAS).

GST Credit Deadlines and Late Request Consequences

Only GST-registered taxable persons can claim a credit for GST included in prices paid for things they use in their businesses. This paid GST is also known as input tax credit,

GST-registered taxable persons have a four-year credit time limit. If the GST credit is not claimed within four years from the moment the relevant BAS is submitted, the entitlement to claim GST ceases to exist. Moreover, even if the taxable persons submit amendments to the original BAS or a private ruling request, this does not constitute a GST claim.

Nevertheless, taxable persons can claim GST credit through BAS amendments, but it must be explicitly stated. In addition to amending the BAS, there are other ways to request GST credit. If the BAS is submitted within the four-year time limit, the credit can be requested by including the claim credits in the next BAS.

Furthermore, taxable persons can submit a Revised BAS (RBAS) for the original period during those four years through Online Services. However, the RBAS is treated like an amended request, and the credits are only included in the BAS once the ATO processes it.

Finally, taxable persons may file a valid objection within the four-year credit period to safeguard their eligibility for those credits.

Conclusion

GST-registered persons should pay close attention to the four-year time limit. After it expires, they can no longer claim GST credits or renew their entitlement. Also, ATO cannot, under any circumstance, extend the four-year credit period.

Source: Australian Taxation Office