GST Payment to ATO added to Business Activity Statement (BAS)

1

Hi,

I recently made a payment for the GST owing to the ATO. My logic was to enter this into Manager as a Payment from my main account to the GST Payable liabilities account. This worked fine and I could see the amount debited from the GST Payable account on my balance sheet. Happy days!

However when I recently generated my BAS report, I noticed this payment of $340 is being added to the G11 Non-capital purchases (including any GST) section of the report. Im a novice accountant but my understanding is the GST payment to the ATO should NOT be added to this section, as it is not an expense or an acquisition of goods/services for my business. Instead, it is simply the settlement of a liability.

Is there a setting so I can have the GST payment subtracted from the G11 Non-capital purchases (including any GST) section of the report?

Any help greatly appreciated!

2

Please post a screenshot of the Edit payment transaction.

3

Manager1
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4

Manager2
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5

Remove the tax code. Payments to the ATO shouldn’t have any tax code

6

As @tony says, the payment to the ATO should have no tax code

Clipboard_03-08-2025_01
Clipboard_03-08-2025_011725×600 101 KB

7

Thankyou guys, that solved the issue.