Skip to main content

Non-GST account has GST against it

Marsha Galicia avatar
Written by Marsha Galicia
Updated yesterday

XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Bookkeeping

Overview

The "Non-GST account has GST against it" XBert flags instances where GST has been applied to transactions associated with an account that is designated as GST Free, BAS Excluded, Tax Exempt, or No GST. This could lead to incorrect GST reporting and compliance risks.

What it does

XBert scans all income and expense transactions over the past 12 months to identify accounts that:

  • Are labelled as non-GST relevant, and

  • Have recorded GST amounts totaling more than $10 (positive or negative)

It then raises alerts for the most material mismatches to help you identify potentially incorrect tax treatment at the account or transaction level.

How it works

The XBert process includes:

  • Reviewing the tax type at both the journal and account level

  • Looking for matches to non-GST tax codes (e.g. GST Free, BAS Excluded, No GST)

  • Filtering only those with GST totals greater than $10 in absolute value

  • Linking the alert to the relevant general ledger account to support easy review

Example/Use Case

John creates a new revenue account called "Consulting Revenue – Exempt" and sets its tax code to GST Free. Zoe then issues invoices using this account, unaware that GST should apply to these services. The invoices go out without GST, which means under-collected GST and potential liability to the ATO.

Alternatively, an account legitimately set as No GST—for things like capital injections—might be incorrectly used in an invoice or bill where GST is applied, triggering an alert.

Accounting software

Xero, MYOB, QuickBooks

Which countries it supports

Australia only.

Processes

This XBert is part of the Bookkeeping Services category. Monitoring accounts where GST has been incorrectly applied or omitted ensures accurate BAS reporting and reduces the risk of ATO audit adjustments or penalties. Reviewing affected accounts helps maintain the integrity of your chart of accounts and financial statements.

Did this answer your question?