GST

Question 1

What is GST

Answer 1

GST is the Goods and Services Tax. It is a broad-based tax of 10% that is charged on most goods and services.

Question 2

Why is gst recorded

Answer 2

If a business is registered for the GST, then the price of any GST-inclusive good or service that it sells will have a GST component. The GST collected is a liability to the business and needs to be paid to the government

Question 3

why should gst get recorded

Answer 3

It is beneficial for a buisness to keep accurate records of all its purchases, then the GST component of the purchase prices paid can be claimed from the government. GST paid reduces amount of any GST liability owed to the government

Question 4

What is the abn

Answer 4

The Australian business number (ABN) is a number that businesses must use so that the Australian Taxation office(ATO) can identify them in all thier dealiings.

ABN is also the GST registration number

Question 5

WHAT HAPPENS WHEN BUISNESSES DO NOT REGISTER FOR ABN

Answer 5

If a buisness does not register for an ABN, then other entities might withhold tax from payments to the buisness at the highest marginal tax rate. The buisness will only be able to claim this money back when the owner lodges an annual income tax. The tax will not be witheld if an ABN is avaliable

Question 6

TAXABLE SUPPLIES

Answer 6

Taxable supplies are those goods and services that are subject to the GST.

Question 7

GST-FREE SUPPLIES

Answer 7

Gst-free supplies are those that are not taxed. Most basic foods, some education cources, and some medical, health care products and services exempt from gst

Question 8

INPUT-TAXED SUPPLIES

Answer 8

Input taxed supplies are sales of goods and services that don’t include GST in the price.

The most common input taxed sales are financial supplies such as lending money and selling or renting residential premises