Legt2751 Mid Sem

A s ae o . s h r d n. .

SCHOOL OF BUSINESS LAW AND TAXATION

GST Free Supplies

diffe.irom npur Taxed Supprtes for cST pu.poses in rhar:

LEGT 2751 BUSINESS TAXATION
MIJI,TIPI,IE CHOICE TEST 52
2OO9

(a)

Wilh an nput laxed suppy the enlerpnse makno the supoiv does nol charge GST on lh6 supply and does not gei an nput tax credit for GST paid on pu.chas€s lhat reate to the input iax€d supply With a GSTffee suppy lh€ ontsrprise making the suppy do€s nol charge Gst on rhe suppy and does not pay GsT on ts purchases lhar relate io lhe suppy charqe GST oi the suppy and do€s not get an nput tax cr€dit for the GST pad on lne purchases that rerate 1o the suppy. With a csTf@e suppy tlre enloDrs€ maklng lhe supply does nol charae GsT on the suppy blt geG an input lax cedl lor the purchases rhat retab to lh€

FEEDBACK TO STUDENTS
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an inpul taxed suppy tlre enteQ se makng the suppy does nol

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Wilh a GST ti€e supply lhe enterpdse makng the suppy does not pay GSTon ls purchas€s but musl charge GSI on ils suppties Wlthen npul taxed supply rhe €nt€lpris€ maki.g (he supply does nol charoe Gsr on the supply and does notgol.n npul lax credit for GST pa d on puEhases thal relate to $e nputlax€d slppy

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wirh a GsT fiee suppiy rhe enteDdse does notcha.ge GsT on rhe suppty bul gels an input l.x credit for the purchases thal €bte to rhe suppy With an npul laxed supply the enteFrise makng tho suppy does not charge GsT on the suppy and does nol pay GsT on rhe purchases ihar

(e)

None orlhe above.

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