# How to code a bill with mixed GST lines in Xero

In Xero, set the tax rate on each line of the bill. Use the GST code for taxable lines and the GST-free code for others, then check the GST total matches the invoice.

A mixed GST bill has some lines with GST and some without, such as taxable goods plus GST-free items. Each line needs its own GST code.

## Before you start

- A user role that can create bills

## The Xero way

Where to find it: Purchases > Bills > New bill, Tax rate column on each line

1. Set Amounts are to Tax exclusive, Tax inclusive or No Tax.
2. On each line choose the Tax rate. Use GST on Expenses (10%) for normal GST purchases.
3. Use GST Free Expenses (0%) for any 0% purchase that is still reported on the BAS at label G11.
4. Use BAS Excluded (0%) only for amounts that must stay off the BAS.
5. Check the GST total at the bottom of the bill matches the invoice.

## Limits in Xero

- Xero works out GST line by line and rounds each line, so the bill GST can differ slightly from GST on the invoice total. You cannot edit the GST amount, but you can add a rounding line.
- Mixed-GST invoices need one line per tax rate.

## Good to know in Xero

- BAS Excluded transactions are left out of the BAS but still appear in the Profit and Loss report. A 0% rate with a Purchases tax type is not reported correctly at G11. Use GST Free Expenses.

## The Pulsify way

1. Forward the supplier's invoice to your Pulsify address or upload it. Pulsify reads every line and finds the supplier in Xero.
2. Pulsify works out the GST rate for each line from what is printed and picks the matching tax rate in Xero.
3. Check any line where the invoice is unclear. Change the tax rate and approve.
4. The bill is created in Xero with the GST on each line.

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

What Pulsify does not do here:

- If the invoice does not show GST by line, Pulsify uses past bills for that supplier. Check those lines yourself.

## Example in Xero

Example Fresh Foods sends one invoice for packaged snacks, fresh fruit and freight. Amounts are Tax exclusive.

- Packaged snacks: $320.00 (Tax rate: GST on Expenses, GST $32.00)
- Fresh fruit: $210.00 (Tax rate: GST Free Expenses)
- Freight: $40.00 (Tax rate: GST on Expenses, GST $4.00)

Subtotal $570.00. GST $36.00 on $360.00 of taxable lines. Bill total $606.00. The GST audit report should show the same $36.00.

## Common mistakes

- Using BAS Excluded for a GST-free purchase. That leaves the amount off the BAS.
- Using a 0% rate with a Purchases tax type. It is not reported correctly at G11.

## Common questions

### Which Xero tax rate do I use for a GST-free purchase?

Use GST Free Expenses (0%) for any 0% purchase that is still reported on the BAS at G11. Use BAS Excluded (0%) only for amounts that must stay off the BAS.

### Can I edit the GST amount on a bill?

No. Xero works out GST line by line and rounds each line. If the bill GST differs slightly from the invoice, you can add a rounding line.

### Does BAS Excluded change the Profit and Loss?

No. BAS Excluded transactions are left out of the BAS but still appear in the Profit and Loss report.

### Does Pulsify code GST by line?

Yes. Pulsify sets a GST code on each line from the rate printed on that line and matches it to a tax code in your ledger.

## Sources

- https://central.xero.com/0/article/Choose-the-right-tax-treatment-on-transactions-AU
- https://central.xero.com/0/article/Troubleshoot-GST-report-discrepancies-AU
- https://central.xero.com/0/article/Select-your-BAS-settings

Source: https://www.pulsify.tech/how-to/code-a-bill-with-mixed-gst-lines-in-xero/ (last checked 2026-10-19)