A plain-English guide to the BAS summary
What labels 1A and 1B mean, how the net amount is worked out, and how to keep your GST figures ready for your BAS.
If your business is registered for GST in Australia, you report it to the ATO on a Business Activity Statement (BAS). The GST part of the BAS comes down to a few labels.
The two labels that matter most
| Label | What it is |
|---|---|
| 1A | GST on sales – the GST you collected from customers |
| 1B | GST on purchases – the GST you paid that you can claim back |
The net amount is 1A less 1B. If 1A is larger, you owe the difference to the ATO. If 1B is larger, you are due a refund.
Keeping the figures ready
The simplest way to avoid a stressful BAS is to make sure GST is right on every document as it is created, not fixed at the end of the quarter:
- Every sales invoice line carries the correct GST.
- Every vendor bill is entered with its GST, so it can be claimed.
- Nothing posts into a period after it has been closed.
Where Cortex Ledger helps
Cortex Ledger keeps GST on every invoice line and produces a GST report from the ledger. With Advanced AI Plus, you can also ask Cortex for a GST and BAS summary in plain English.
This is general information, not tax advice. Talk to your accountant or registered BAS agent about your own situation.
