GST Compliance

GST compliance should reconcile back to the records behind the return.

TaxGraph supports businesses with recurring GST compliance, returns, reconciliations and related follow-up, with attention to how the GST information connects with the underlying business records.

A filing acknowledgement confirms that a return was filed. It does not, by itself, tell you whether the records behind it agree.

Filing is one step, not the whole process

A return may be filed. The underlying GST position may still need attention.

GST compliance should not begin with the return. It should begin with the information behind it — the transactions, the records and the reporting that has to agree before a filed return means very much.

  1. Books and GST figures do not fully agree

    The accounting records and the information used for GST reporting show differences that are known about but not resolved.

  2. Reconciliation happens late, or after filing

    Sales records and GST reporting are compared once the period has closed, which turns a correction into a later-period adjustment.

  3. Purchase records and available GST information differ

    What the business has recorded and what is available on the GST side do not line up, and the reason for each difference is not always established.

  4. Credit notes, amendments and adjustments stay open

    Items that should have been resolved in an earlier period continue to appear, and nobody owns closing them.

  5. Reversals and reclaims are carried forward without follow-up

    Adjustments are made in one period on the understanding that they will be revisited, and then are not revisited.

  6. Information arrives too close to the due date

    Compliance work compresses into the last few days, which leaves time to file but not to question what is being filed.

  7. Accounting and GST run as separate workstreams

    Two processes work on the same underlying transactions without reconciling to each other, so each looks complete on its own terms.

  8. Management sees filing status, not open items

    The reporting confirms that returns were filed. It does not show what remained unresolved behind them.

Not every business has all of these, and a difference is not the same thing as non-compliance. But where several of them are present together, the compliance process is usually being managed at the return, rather than at the information behind it.

Where differences arise

Two streams of information have to agree before the return means much.

Most recurring GST difficulty sits in one of two places: what the business recorded on the outward side against what was reported, and what the business recorded on the inward side against the GST information available.

RESOLVED WHERE POSSIBLE, OPEN WHERE NOT Ready to file

A reconciliation identifies differences. The correct tax treatment of any difference depends on the underlying facts and the applicable GST requirements.

What the service covers

GST compliance support, scoped to what the business actually needs.

GST requirements differ by business, by number of registrations and by how the underlying records are maintained. What follows is the range of work this service covers.

Depending on the agreed scope, GST compliance support may include:

  1. Recurring GST return compliance

    Preparation of, and support for, the applicable recurring GST return requirements, based on the information provided and the scope agreed. Which returns and which registrations are covered is set in the engagement rather than assumed.

  2. Information review

    Review of the relevant business and accounting information used for GST compliance, so that what goes into the return has been looked at rather than simply passed through.

  3. Books-to-GST reconciliation

    Where included, comparison of the relevant accounting records with the GST reporting and information, and identification of the differences that need follow-up.

  4. Outward supply and sales information

    Where included, review and reconciliation of the relevant sales information, adjustments and GST reporting, so that what has been recorded and what has been reported can be tied together.

  5. Purchase and input information

    Where included, review and reconciliation of the relevant purchase information against the GST information available. This identifies differences for follow-up; it does not by itself determine input tax credit eligibility, which depends on the underlying facts and the applicable requirements.

  6. Adjustments and differences

    Tracking and follow-up of relevant differences, amendments, reversals and reclaims, and credit or debit note items, where applicable and where included in scope.

  7. Follow-up and open items

    Clear identification of the information or issues that need action, before or after filing, so that open items are visible rather than carried quietly into the next period.

  8. Coordination with the accounting function

    Working with the existing accountant or accounts team where GST compliance depends on the underlying books. This is coordination, not a takeover of the accounting work.

Not every item above forms part of every engagement. What is included, which registrations are covered and how often the work runs are agreed before the engagement begins.

How the work runs

A recurring process that starts before the return.

The order matters. Most GST difficulty comes from starting at the return and working backwards under time pressure.

  1. Transactions

    Start with what actually happened in the business during the period.

  2. Records

    Capture the relevant accounting and GST information for those transactions.

  3. Reconcile

    Compare the connected sources and identify where they differ.

  4. Review

    Resolve what can be resolved, and clearly identify what still needs action.

  5. Comply

    Prepare and furnish the applicable GST compliance, on the agreed scope and the information available.

  6. Follow up

    Track unresolved items, corrections and any action required in a later period.

The last stage is the one most often missing. Without it, the same differences reappear in the next period and the process restarts from the same position.

Where this service fits

GST Compliance may be relevant where a business

  • is GST registered and needs recurring compliance support on an ongoing basis
  • already has accounting staff, but the GST information needs better coordination
  • wants the books and the GST reporting reviewed together, where that is relevant
  • sees the same reconciliation differences returning period after period
  • needs a clearer recurring process for information, review and follow-up
  • wants support around agreed GST compliance requirements rather than ad-hoc help

It is a different requirement where a business

  • needs a new GST registration rather than recurring compliance
  • primarily needs the underlying accounting records brought up to date
  • needs formal representation, appellate work or a specialist legal opinion
  • is looking for statutory audit, assurance or certification

Not sure which of those describes the situation? Start with the situation and the appropriate scope can be identified from there.

Start with the situation

What is actually happening?

Scope and responsibilities

What is included depends on what is agreed.

GST engagements vary by the registrations and entities involved, the filing frequency, the state of the underlying records and the reconciliation work required. Scope is defined before the engagement begins rather than assumed from a service description.

The business remains responsible for providing complete and accurate information in time for the work to be done properly. Which returns, which registrations and what frequency are covered is set out in the engagement.

None of this is meant to narrow the service. It is meant to make the engagement predictable, so that what TaxGraph is responsible for and what the business is responsible for are clear from the start.

There are also limits that no adviser can remove:

  • TaxGraph cannot guarantee that no notice, query, mismatch or review will arise
  • reconciliation identifies differences; it does not determine tax treatment on its own
  • input tax credit outcomes depend on the underlying facts and the applicable requirements
  • government portal availability and authority processing are outside TaxGraph’s control

Unless specifically included in the agreed scope, this service does not cover:

  • GST Registration, which sits under Business Setup & Registrations
  • accounting and bookkeeping work on the underlying records
  • formal litigation, appellate work or specialist representation
  • complex legal opinions or highly technical transaction positions, which may require separate specialist review
  • statutory audit, assurance or certification of any kind

Before you get in touch

Frequently asked questions

Start with the GST requirement

Tell us what is happening with your GST compliance.

Whether the issue is recurring filing, reconciliation, unresolved differences or coordination with the accounting records, start with the situation and the appropriate scope can be defined from there.

If it is easier to talk it through first, a short introductory call is usually the quickest way to establish whether this is the right service.