Free Accounting Software + Tax Returns, BAS, Bookkeeping and Payroll from Free Accounting Pty Ltd

Free Accounting Software Forum - GST applicable or not for cash payments?

Back to all forums
If I make a cash payment, do I put down GST applicable or not, since I am technically paying GST but indirectly.

Many thanks!
If you are registered for GST and you have a Tax Invoice then you put GST Taxable Purchase. If you are not registered for GST then you always put GST Not Applicable even if you have a tax invoice.

I don't know what you mean by "indirectly". The Tax Invoice needs to be to you. You need to be making the purchase. You cannot claim GST on something someone else buys. So let's say someone who is not registered for GST buys something with GST in it and then on sells it to you, you cannot claim any GST. This does not mean you cannot have an agent buy something on your behalf but you have to be the purchaser contracted to buy the thing and it has to be your name on the invoice.

You could also refer to the ATO website and search "Claiming GST credits".
Excellent and prompt answer thankyou! Sorry for the confusion in the question, I was curious about the GST credits but I've read up on it now.

Post a New Message

You must be logged in to post a message.