Business Self-Review Checklist: GST Classification of Products

Business Self-Review Checklist: GST Classification of Products

Is your business classifying GST correctly? Mistakes in GST classification can lead to costly under-reporting.

To help you avoid these pitfalls, the Australian Taxation Office (ATO) has recently issued guidance with a self-review GST classification checklist for food and health products. This checklist is designed to ensure small and medium sized businesses are accurately reporting their GST and classifying their products. 

While using this guide is not required, understanding the ATO’s checklist for GST classification is crucial for businesses to avoid significant errors and maintain compliance with tax regulations. Incorrect GST classification of products can lead to substantial under-reporting or over-reporting of GST, resulting in potential penalties and increased tax liabilities.

The checklist offers practical, step-by-step guidance to: 

  • Review how products are classified for GST, whether they’re imported, purchased or produced for sale.
  • Evaluate the strength of their business systems and processes that affect GST classification. 


Additionally, small food retailers with annual sales of $2 million or less can choose to use simplified GST accounting methods instead of the standard approach. 

Deciding whether to adopt these methods requires careful consideration of your business’s financial situation and operational needs. Our team can help by evaluating which method is best suited for your business, comparing it with the standard GST approach and implementing the most effective solution tailored to your specific needs.

We ensure that your GST practices are compliant, streamlined and tailored to support your business’s growth. Navigate GST obligations with confidence, reach out to your Simmons Livingstone advisor on 1800 618 800 or via email at admin@simmonslivingstone.com.au.



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