Question

A GST registered business has purchased supplies from a non-GST registered company. What action can the...

A GST registered business has purchased supplies from a non-GST registered company. What action can the GST registered company take for this transaction?

Select one:

a. It can’t claim a GST credit as the supplier must not include GST on the price

b. It can only claim a GST credit

c. It can claim a GST credit and also can offset them against the amount of GST the business is liable to pay

d. Both B& C

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Homework Answers

Answer #1

(a) It can't claim a GST credit as the supplier must not include GST on the price

Explanation:

A non-GST registered company cannot charge GST on the invoices issued by the company and will issue a retail invoice unlike a tax invoice issued by a GST registered Supplier. GST can be claimed only from a tax invoice and not retail invoice. Therefore, A GST registered business purchasing goods from non-GST registered business will not be able to calim any GST credit as the supplier is not authorised to include GST on the price.

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