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Question 5 If the invoice price for goods sold to a customer is $798, including GST,...

Question 5 If the invoice price for goods sold to a customer is $798, including GST, how much GST is to be collected from the customer? Nil. $72.55. $79.80. $98.00.

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Answer #1

GST (Goods and Service tax) is a value added tax on manufacture, sale and consumption of goods and service.The customer is consuming the goods and there is no further value addition on goods by the consumer. He is the ultimate consumer of goods. The GST on goods purchased by the customer is already included in the price of goods. So he has already paid the GST to the seller of goods. Such GST included in the price of goods is remmited to the government by the seller of goods. So no further GST will be collected from the consumer.

So the GST to be collected from customer = NIL

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