If your organisation is registered or required to be registered for GST, it generally includes GST in the price of most goods and services and anything else it sells. These sales are called taxable sales. See Taxable sales.
There are other types of sales where your organisation does not include GST in the price. These are called GST-free sales and input taxed sales. See GST-free sales and Input taxed sales.
Being registered for GST means that your organisation:
must pay the GST it has collected from its sales to the Tax Office
can claim GST credits for any GST included in the price of its business purchases, and
must complete an activity statement to report the taxable sales and claim GST credits.
If your organisation makes a taxable sale, the price includes GST. Your organisation makes a taxable sale if it is registered or required to be registered for GST and the sale is:
for consideration
a part of the organisation’s activities
connected with Australia, and
not GST-free or input taxed.
The GST included in the price of a taxable sale is equal to 1/11th of the sale price.
Your organisation can claim a GST credit for the GST in the price of things it buys to make a taxable sale.
GST-free sales
If your organisation makes a GST-free sale, it does not include GST in the price. GST-free sales include:
basic food items (such as fruit and vegetables, meat, bread and plain milk)
most education, child care and health services, and
some exports.
Your organisation can claim a GST credit for the GST in the price of things it buys to make a GST-free sale.
Input taxed sales
If your organisation makes an input taxed sale, it does not include GST in the price. Input taxed sales include:
the sale of residential property (unless it is new)
leasing of residential property, and
financial transactions, such as providing a loan.
Your organisation cannot claim a GST credit for the GST in the price of things it buys to make an input taxed sale.
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