Input Tax Credits denied due to lodging BASs late.

The Administrative Appeals Tribunal has held that a partnership’s entitlement to $16,361 of input tax credits claimed for the quarterly periods of 1 July 2012 to 31 March 2017 had ceased by the time the associated BASs were lodged with the ATO on 21 June 2021, and therefore the ATO did not need to pay the taxpayer a refund.

The operation of the GST Act means that, unless an extension of time to lodge a BAS has been granted prior to the expiry of 4 years after the day on which it was required to be given to the ATO, the entitlement to input tax credits immediately ceases.

The ATO has no discretion to get around this.  So to avoid the potential of losing the ability to claim back GST credits it is imperative to lodge BAS on time or apply for an extension where circumstances allow.

If you have any questions or require assistance with your BAS, please get in contact with our office.