When you are entitled to receive GST refund.

For example,you have the following balances on 30/6/2006, GST COLLECTED $1,200.00; GST PAID -$1,500.00,this means you paid more GST than you collected,you are entitled to get some GST refund.

The GJ could be
DR GST COLLECTED 1,200.00
DR GST LIABILITIES 300.00
CR GST PAID 1,500.00

After this GJ, the balance of GST COLLECTED/PAID will go back to ZERO and you will have a NEGATIVE balance of $300.00 for GST LIABILITIES ACC.Once you have the NEGATIVE liability acc balance, that means some oneelse owes you money. The ATO would refund this 300.00 to you.

Once you received this $300.00, the journal for this payment would be
DR CAHS ON HAND 300.00
CR GST LIABILITIES 300.00

The balance of GST LIABILITIES is back to zero too.