What is the difference between gst free and non gst

The farmer would then claim a GST credit on those chickens. No GST is required to be paid on items that are input tax. So, a landlord whose business consists of renting private residential homes will be input taxed. The landlord will not charge GST on the rent; however, they cannot claim GST credits on the items they use to run the business. Sometimes an input taxed item will also be classified as GST-free.

Save my name, email, and website in this browser for the next time I comment. Sign up to our newsletter. Share on facebook. Share on twitter. Share on linkedin. Share on whatsapp. Exempted Supply Exempted supply means the supply of goods or services or both which attracts nil rate of tax or which are specifically exempt from GST through government notification and includes non-taxable supply. Read More Articles. Must Have features for a billing software Read Article ».

Leave a Reply Cancel reply Your email address will not be published. Remain Updated with GST. Subscribe to our weekly newsletter and get updates in your email.

Excursions related to an educational curriculum will be GST-free, except for the food component, and the accommodation component for tertiary courses. Course materials supplied are GST-free, however this does not extend to textbooks, food and equipment supplied that becomes the property of students. Where educational institutions charge separate hire fees for goods such as musical instruments, such a supply will not be subject to GST. Membership of student organisations will be subject to GST, private tutoring, and.

Boarding school accommodation will be GST-free, however not the food component. Tertiary student accommodation will not be GST-free. Non-commercial activities of charitable institutions will be GST-free. The supply of second hand goods by a charitable institution will be GST-free provided that the charity has not changed the original character of the goods. Note: If the greengrocer used some of those goods for private, non-business purposes, only a proportion of the input tax credit for GST on those goods would be allowed.

The greatest impact of GST-free status will normally be felt where the customer is a private consumer. It will not matter so much where the customer is a business that can get an input tax credit for GST in any event, though there may be some cash flow implications. These are input taxed supplies. The landlord therefore will not charge GST on the rent, and cannot claim input tax credits for the GST it pays on the goods and services it acquires to run the business.

Note : If the landlord also used some of the goods and services in other business activities that were taxable or GST-free , it could claim a proportion of the GST as an input tax credit.