What is a GST Settlement?

A GST Settlement refers to the process where a business makes a cash payment to the tax authority in order to settle a GST liability. This involves remitting the amount of GST collected from sales that must be paid to the government, typically after calculating the GST owed based on the sales made in a specific period, subtracting any GST credits that can be claimed on purchases. The settlement ensures that businesses comply with their tax obligations and reflect accurate financial reporting for both sales and purchases.

While the other options present different scenarios related to GST, they do not define the process of a GST Settlement. For example, cash receipts for excess GST paid might involve accounting entries but do not define an actual settlement of liability. A refund process for GST overpayments describes a situation of receiving funds back from the tax authority rather than settling a debt. Lastly, a record of all GST transactions pertains to documentation and reporting but does not capture the action of settling a payment owed. Hence, the answer focuses correctly on the specific action taken to remit GST liabilities.