For almost all kinds of goods and services that are available for sale, the value-added or consumption tax amounting to 10% of the value of the product or service is known as Goods and Services Tax or GST. This is a tax which is applied on the value of production of almost all goods and service. It is not given back to the final customer and is reimbursed to all parties and/or individual who are involved in the chain of production.
Brief History of GST
During the 1985 Tax Summit, federal treasurer Paul Keating first proposed the idea of a broad-based consumption tax. But this was later dropped by the then Labour Prime Minister, Bob Hawke, due to pressure form the ACTU and welfare businesses and groups. However, on 1st July, 2000, the Howard Government introduced GST as a replacement for the previous federal wholesale sales tax system.
How GST works
After registration of a business for GST, this tax is and will be included in the prices of all the goods and/or services being provided by the business. While selling goods and/or services to customers, GST collection is made. Registration for GST is only required once even if the person operates more than one business. If a business is GST registered, it is recommended that they issue tax invoices to all customers, charge the right amount of GST and then send it to the proper authority along with the BAS of the business.
Who to contact
If a business firm or an individual who runs a business is in dire need of assistance while filing for GST Mortdale, they can go online and search for the best GST agent who will guide them. It is recommended by the law to charge GST on all products and services except the ones that are GST-free.
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