Does the entity intend to account for GST on a cash basis or non-cash (accrual) basis?
You have the option to account for all of your GST in either of two ways: • the cash basis • the non-cash basis. If at a later time you wish to change your accounting basis, you will need to make a request to the Tax Office. Cash accounting Under this GST accounting method, you account for your GST liability in a particular tax period to the extent you make a payment for the taxable supply. Non cash accounting (accrual) Under this GST accounting method, you account for your GST in the tax period in which you make a payment (including a part payment) or an invoice is issued, whichever occurs earlier.
