GST and business transactions

Question 1

Taxable Supplies (Sales)

Answer 1

It refers to when a business is not registered for GST meaning they cannot charge GST on its invoices but rather their taxable supplies. It also means that they are entitled to input tax credits on the GST they have paid to make those supplies.

Question 2

GST-free Supplies

Answer 2

GST is not charged on GST-free supplies, and is not payable to the ATO. Some GST-free supplies include - Child care, cars for disabled people, charities, education, health services and water.

Question 3

Input-taxed Supplies

Answer 3

This includes - Certain residential premises, residential vents, interest, loans, life insurance, shares bought/sold for superannuation.

A business that provides input-taxed supplies are not charged any GST, while the seller is unable to claim any input-tax credit for GST of those purchases.