GST and the funeral industry

Terms we use When we say: GST credit, we mean the GST term input tax credit sale, we are mean the GST term supply purchase, we mean the GST term acquisition.

How does GST apply to funeral services?

GST applies to all funeral services.

If you sell funeral services, you are providing a funeral arrangement, not a series of separate supplies. When you calculate GST, you will need to include GST on the total package, even if some parts of it are GST-free to you. You cannot separate individual services from the funeral package.

For example, a church service supplied as part of a funeral is GST-free if it is provided by a religious institution as part of practicing that religion. However, if the church service is included in your funeral package, it is no longer a service provided by a religious institution and you need to charge GST on the total price of the funeral package, including the church service.

The amount of GST you will need to pay us is equal to one-eleventh of the total price of the funeral package.

For more information about mixed supplies, refer to GSTR 2001/8 Goods and services tax: apportioning the consideration for a supply that includes taxable and non-taxable parts.