Assignment First











GST is a tax, which is broad based and having a flat rate of 10 percent. This tax is added to most commodities and services that are consumed, used, and bought in Australia. However, there are commodities which are exceptions with written concessions and allowance with regards to the GST rules.
The GST works in the following ways:
The addition of 10 percent to the businesses is done with respect to their prices of most goods and services supplied to the customers. This amount of 10 percent is then passed on to the Tax Office.
There is GST charge, charged by the business but not kept by them. The business also pays GST with an obtainment of credit for it. In other words, the businesses work as collecting agents for Tax Office.
The ultimate burden is borne by the end users by paying extra 10 percent without getting any credit.
There should be registration obtained by the business of both charging GST and getting credits for it.
The activity statements of the businesses have been accounting both charge of the GST and claimed credits. Apart from these, a separate GST return is created for each quarterly or monthly tax periods.
In case, a tax period’s GST is in excess of the credits, the balance is paid by the business to the Tax Office. In case, the credit exceeds the GST, the refund is obtainable.


免税的商品和服务包括慈善、出口、教育、卫生服务和食品。还有一些商品是“进项税”的,这意味着供应商不会就商品和服务向其客户收取消费税,或者可以要求在购买商品和服务时抵扣已支付的消费税。对于汽车、保险、进口、土地开发、赌博和二手商品也有特别的规定(Kirk 2006)。

任何业务,如营业额每年达75,000元或以上,均须登记成为商品及服务税。营业额是在加消费税之前计算出来的。如果营业额低于7.5万美元,企业可以选择是否注册。Wonder Sports以每支110美元的价格购买了100个网球拍,这一事实使得总购买金额达到1.1万美元。Wonder Sports以200%的加价出售球拍。因此,每个球拍的价格为220美元。在这种情况下,如果不加上消费税,营业额为22 000美元。假设Wonder Sports没有购买其他商品,它为他们提供了注册GST的选择。由于澳大利亚网球用品被描述为一个大型制造商,因此假定它们的年营业额超过75 000美元。年营业额低于7.5万美元的公司可以选择注册的原因解释如下。

消费税税率固定在10%。每个球拍的消费税为220美元,Wonder Sports为22美元。90个球拍的消费税总额为1980美元。

同样,当Wonder Sports购买了90个球拍的供应品时,球拍要收取10%的费用,但该公司可以将其作为GST信贷。因此,每笔交易所要求的消费税抵免额是110美元的10%。结果是每个球拍11美元。因此,对于90个球拍,GST的信用额度是990美元。Wonder Sports向税务局缴纳的商品及服务税是所征收的商品及服务税与所缴纳的商品及服务税之间的差额。因此,这个数字是$(1980 – 990),即$990。同时考虑了90个球拍,因为已经有10个球拍被退回并退款。也有假设,在这种情况下,所有的商业活动都发生在同一纳税期间。Wonder Sports已经被提供了注册的选择,因为GST已经考虑了合理的资金数额,该公司希望能够收回这些信贷。
The commodities and services that are GST free are some items of charity, exports, education, health services, and food. There are other commodities that are ‘input taxed’ meaning the supplier will not be charge GST to its customers on the commodities and services or can be claiming the credit for the paid GST on the buying of the commodities and the services. There are also special rules applicable to the cars, insurance, imports, land development, gambling, and second hand goods (Kirk 2006).
Any business will need in registering for GST if their turnover annually is $75,000 or more. The turnover is calculated before the addition of GST. In case the turnover is less than $75,000, the business has the choice whether to register or not. The fact that Wonder Sports purchased 100 tennis rackets at $110 each makes the total figure of purchase $11,000. The Wonder Sports sells the rackets at 200 percent markup. Thus, the price each racket is priced at $220. In this case, the turnover is $22,000 without the addition of GST. Assuming that no other goods are purchased by the Wonder Sports, it provides them a choice to register for GST. Since Aussie Tennis Goods have been described as a large manufacturer, it is assumed that their annual turnover is over $75,000. The reason that companies with annual turnover less than $75,000 has the choice of registering is explained as follows.
The rate of GST has been fixed at 10 percent. The GST for each racket, priced at $220 for the Wonder Sports $22. The total GST charged for 90 rackets is $1,980.
Likewise, when Wonder Sports purchases the supplies of 90 rackets, 10 percent is charged on the rackets, but the company can be claiming it as GST credit. Thus, the GST credit claimed per racket is 10 percent of $110. The figure that comes out is $11 per racket. Therefore, for 90 rackets, the GST credit claimed is $990. The GST paid to the tax office by Wonder Sports is the difference between the collected GST and credits paid. Therefore, the figure is $(1,980 – 990) i.e. $990. All these while, 90 rackets are considered, since 10 rackets have been returned and refund obtained. There is also assumption that all the business activities in this case have taken place in the same tax period. The Wonder Sports has been provided with the choice to register as a reasonable amount of fund has been considered for GST, the company would like and being able to claim those credits back.