Goods and Services Tax (GST)
Definition of 'Goods and Services Tax (GST)'
The GST is collected by the Australian Taxation Office (ATO) from businesses that make taxable supplies. Businesses that are registered for GST must charge GST on their sales and remit the GST collected to the ATO. Businesses that are not registered for GST do not need to charge GST on their sales.
The GST is a destination-based tax, which means that the GST is levied on the supply of goods and services where they are consumed. This means that if a business in Australia sells goods to a customer in another country, the GST is not payable on the sale. However, if a business in Australia purchases goods from a supplier in another country, the GST is payable on the purchase.
The GST is a major source of revenue for the Australian government. In 2020-21, the GST raised $34.6 billion in revenue. The GST is used to fund a range of government services, including health, education, and infrastructure.
The GST is a complex tax, and there are a number of rules and regulations that businesses need to be aware of. If a business does not comply with the GST rules, it may be subject to penalties.
The GST is a controversial tax, and there are a number of arguments for and against the GST. Some people argue that the GST is a regressive tax, as it imposes a higher burden on low-income earners than on high-income earners. Others argue that the GST is a fair tax, as it applies to all goods and services, regardless of who buys them.
The GST is a major part of the Australian tax system, and it is likely to remain in place for many years to come.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.