Is GST included in the price of everything you sell?
If you are registered (or required to be registered) for GST purposes, GST is included in the price of most goods and services you sell to others in the course of your business. These are called 'taxable sales'.
There are some goods and services which are 'GST-free', meaning you don't have to charge your customer GST. But you can still claim GST credits.
These 'GST-free' items include:
- most basic food
- some education courses, course materials and related excursions
- some medical, health and care services
- some medical aids
- some medicines
- some goods produced for export
- some childcare
- some religious services and charitable activities
Not everything Lou sells includes GST. Here are some examples of items that he sells that don't have GST:
- bread and bread rolls without icing or filling
- cooking ingredients such as flour, sugar, pre-mixes and cake mixes
- fats and oils for cooking
- milk, cream, cheese and eggs
- fruit juice containing at least 90% by volume of juice and bottled water
- tea bags
- fruit and vegetables.
Here are some examples of items that he sells that do have GST:
- soft drinks and flavoured milk
- biscuits, crackers and pretzels
- savoury snacks such as packaged chips and hot chips
- confectionary such as chocolates and lollies
- food marketed as prepared meals such as frozen meals that only requires heating, before serving (for example, frozen lasagne).