When you can claim a GST credit

You need to register for GST if you reach a certain threshold for business turnover, you can claim GST credits.

You are entitled to claim only in case if you pay for things you use in business and the price is GST included this is called an input tax credit, or a GST credit.

When you lodge your BAS (business activity statement), You can claim credits in it.

You can claim GST credits if you meet these below conditions:

  • If you intend to use your purchase solely or partly for your business rather than private use, the purchase does not directly relate to making input-taxed supplies.
  • The purchase price  for business must include GST.
  • If you make payment on the item that you purchase, or you are liable to provide payment for the item you purchased.
  • You have a tax invoice from your supplier  and will be purchasing more than A$82.50.

If you want to claim for GST credits and you need to keep in mind that your supplier must be registered for GST.

A four-year time limit applies for claiming GST credits. Backdated GST registration may apply penalties.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au