MuffinMan

I have a question in accounting that gives me the GST Recoverable and GST Payable, and it wants me to find the amount of remittance, refund claimed, and due date. For example the first question gives me a end period of March 31, GST REc of $904.72, and GSt pay $1507.20. How do I do this question?

Morninglori

Your due date is March 31 therefore you added up the GST for the first three months of the year (first quarter) The GST you collected in your business I assume is the $1507.20 and the GST you paid out is $904.72 therefore you owe $602.48. (Line 115 is -602.48) and you have to pay it by the end of April. (If I'm not understanding you properly and your figures are reversed you get a refund of the $602.48)

Darla

We don't have GST (a value-added type of tax) in the United State currently. However, if your US business has sales in other countries, e.g Canada, Australia, that do have a GST and those sales are over a certain amount, then you are required to collect and remit GST to that country. GST is remitted on a cash basis (vs accrual basis.) A business charges GST to their customers. That's the Payable part -- you must pay in to the government what you have collected on their behalf. And also pays GST to their vendors. That's the Recoverable part -- you only have to remit to the government the amount over and above what you have paid to your vendors for GST. The GST owed is the difference between what you have collected from your customers, 1,507.20 and what you paid out to your vendors, 904.72 = 602.48. Due date would depend on the country.