HOW-TO

How to check GST coding on bill records in Xero before you lodge your BAS

Short answer

In Xero, run the GST report by tax rate for the period. Review large bills, new suppliers and freight, fix wrong tax rate entries and check you hold a tax invoice for each credit.

Last checked

A pre-BAS GST check means reviewing bills for wrong tax codes, missing tax invoices and suppliers not registered for GST before you claim credits.

Before you start

  • Permission to view reports

The Xero way

Where to find it: Reporting > All reports > GST audit report, GST calculation worksheet, Activity Statement

  1. Open the GST audit report for the BAS period and look for lines with BAS Excluded on income or expense accounts. Those stay off the BAS but are in the Profit and Loss.
  2. Look for GST on Expenses lines coded to asset, liability or equity accounts. Those are in the BAS but not in the Profit and Loss.
  3. Check any custom tax rate that is not 0% or 10%, and any 0% rate that is not GST Free Expenses.
  4. Open the Activity Statement (Reporting > All reports) and compare it with the GST calculation worksheet.
  5. Fix bills before you lodge.

Limits in Xero

  • The GST calculation worksheet works out GST as one-eleventh of totals, so custom rates can make it differ from the GST audit report.

Good to know in Xero

  • Check Simpler BAS or Full BAS in your Activity Statement settings. Full BAS also shows G2, G3, G10 and G11.

Words Xero uses

  • BAS Excluded. A tax rate for amounts that do not go on the BAS at all.

The Pulsify way

  1. Forward bills to Pulsify through the period.
  2. Pulsify sets a GST code on each line from the rate printed on that line.
  3. Pulsify flags a supplier ABN that is not registered for GST when GST is charged.
  4. Review flags before approval, so fewer errors reach Xero.

Pulsify connects to Xero in one click. Approved bills are created in Xero with the source file attached.

What Pulsify does not do here

  • Pulsify does not lodge or prepare your BAS.
  • It does not check bills already in Xero.

Common mistakes

  • Coding GST on Expenses to an asset, liability or equity account. It reaches the BAS but not the Profit and Loss.
  • Using a 0% rate that is not GST Free Expenses.

More help

Sources

Last checked 2026-10-19. Confidence: confirmed.

Common questions

What does BAS Excluded do?

It leaves the amount off the BAS but the amount still appears in the Profit and Loss.

Why does the GST calculation worksheet differ from the GST audit report?

The worksheet works out GST as one-eleventh of totals, so custom tax rates can make it differ from the GST audit report.

Do I need Simpler BAS or Full BAS?

Check which one is set in your Activity Statement settings. Full BAS also shows G2, G3, G10 and G11.

Does Pulsify prepare my BAS?

No. It helps get bills coded correctly.

Pulsify setup guides

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