Toggle left hand content menu
  • When to charge GST (and when not to)

    If you are registered for GST - or required to be – the goods and services you sell in Australia are taxable unless they are GST-free or input taxed.

    Non-profit organisations may be entitled to concessions on some transactions.

    Taxable sales

    To be a taxable sale (that is, a sale that has GST in the price), a sale must be for payment of some kind, made in the course of operating your business and connected with Australia.

    You pay GST on the taxable sales you make when you lodge your activity statement.

    You can claim credits for the GST included in the price of purchases you needed to make your taxable sales.

    GST-free sales

    Most basic foods, some education courses and some medical, health and care products and services are exempt from GST. Exports and businesses sold as a going concern are also exempt. Sales of these products are called GST-free sales.

    You don't include GST in the price if your product or service is GST-free. You can claim credits for the GST included in the price of purchases you needed to make your GST-free sales.

    Input-taxed sales

    Financial supplies, such as lending money, and renting out residential premises are transactions we call input-taxed sales.

    You don't include GST in the price of input-taxed sales, and you can't claim GST credits for the GST included in the price of purchases you needed to make your input-taxed sales.

    Grants and sponsorship

    The GST treatment of grants and sponsorships depends in part on whether something is supplied in return for the grant or sponsorship money.

    Insurance settlements

    You do not have to pay GST on an insurance settlement, provided you tell the insurer before making the claim what proportion of the premium you can claim GST credits for (that is, what proportion is business-related).

     

  • Last modified: 27 Mar 2015QC 22417