2.6 How does a builder claim a credit for Wholesales Sales Tax (WST) when he does not know the amount of WST which has been charged?

Non-Interpretative - straight application of the law

ATO position

Public ruling GSTR 2000/8 Goods and Services Tax: special credit for sales tax paid on stock states at paragraph 118 that where goods have been purchased from a retailer and the invoice does not show the amount of WST, the following method may be used to calculate the amount of Sales Tax:

Purchase Price x 50% x the sales tax rate

This method reduces the total purchase price by 50% to arrive at an estimated taxable value on which tax would have been charged. Please also refer to page 11 of GSTR 2000/1.