Home – New Forums Money matters claiming GST

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  • #968252
    TehCamel
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    Am I correct in my understanding:

    If I am registered for GST, and I pay for a product or service with which GST is included, I claim that GST back.

    If I then on-sell that product or service, with GST included, I have to hold the GST and pay it.

    In that scenario, net gain would be zero. I would obviously have to be registered for GST

    If I am registered for GST, but not selling any product or service that needs GST included, I can still claim back the GST on the product or service I purchased, mentioned above. (provided I am registered for GST).

    Am I correct?

    #1031919
    lutrov
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    Yep, that’s basically it: GST RECEIVED – GST PAID = GST OWED.

    #1031920
    TehCamel
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    cheers buddy

    #1031921
    MattR
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    TehCamel, post: 38398 wrote:
    If I am registered for GST, but not selling any product or service that needs GST included, I can still claim back the GST on the product or service I purchased, mentioned above. (provided I am registered for GST).

    Am I correct?

    Doctor’s and Schools do this all the time – they tend to get GST Refunds.

    What are you selling?

    #1031922
    CruzAccountant
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    MattR, post: 38415 wrote:
    Doctor’s and Schools do this all the time – they tend to get GST Refunds.

    What are you selling?

    Don’t forget exports as well.

    Regarding the “nil sum game” comment, if you make a margin on the on-selling of a product, then you’ll be paying more GST than you’ll be claiming back.

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