If your organisation is registered for GST it can claim a credit for any GST included in the price of goods and services bought in carrying on its activities.
Your organisation claims GST credits in its business activity statement.
Claiming GST credits
You can claim GST credits if the following conditions apply:
- you intend to use your purchase solely or partly for your organisation, and the purchase does not relate to making input-taxed supplies
- the purchase price includes GST
- you provide or are liable to provide payment (whether monetary for non-monetary) for the item you purchased
- you have a tax invoice from your supplier (for purchases more than $82.50 including GST).
You should ensure your suppliers are registered for GST before you make a claim on your activity statement for the GST credits. You can check the GST registration status of an entity by searching the ABN LookupExternal Link.
Note: A four-year time limit applies for claiming GST credits.
When you cannot claim a GST credit
You cannot claim a GST credit:
- without a valid tax invoice
- for purchases that do not have GST in the price
- for wages you pay to staff (there is no GST on wages)
- for motor vehicles priced above a certain limit.
Goods and services that don't have GST in their price include:
- GST-free items (such as basic foods)
- input-taxed items (such as bank fees and loan interest)
- purchases from a business that is not registered for GST or required to be registered for GST (as GST isn't included in the price).
You also cannot claim GST credits for the following, even if GST is included in the price:
- purchases you intend to use for private or domestic purposes
- purchases you intend to use to make input-taxed supplies, such as those associated with providing residential accommodation
- some purchases that you can't claim as an income tax deduction, such as entertainment expenses
- land purchases under the margin scheme.
See also:
If your organisation is registered for GST it can claim a credit for GST included in the price of goods and services bought in carrying on its activities. There are conditions that apply before you can claim, and there are types of transactions that you can't claim a credit for.