ACCT2331 Chapter 7: Chapter 7
Document Summary
7. 2 background to the introduction of gst: gst introduced in 2000 to replace the former sales tax regime, sales tax vs. gst differences [p138-p139, political and international background of gst [p139-p140, gst/vat rates of different country [p140] 7. 3 basic principles of gst: legislative scheme. Main statute: a new tax system (good and services tax) act 1999. List of acts gst is imposed under [p141: gst and input tax credit. Gst system has 2 key concepts: charging gst and claiming itcs. Central provision in gsta s7-1: gst and itc rules [p141: basic effect of gst. Neutral effect on supplies between registered entities. Itcs are not available for gst charged on things acquired/imported by entities that are not registered for gst (e. g. end consumer) [p142] Illustration of how gst and itc work in simple transactions [p142: charging gst. Gst regime distinguishes between different kind of supplies and importations.
