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How GST works at workshops
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<blockquote data-quote="vr2turbo" data-source="post: 1064692327" data-attributes="member: 92229"><p>Same every where. That is why GST is not good because it is calculated on the last sale amount.</p><p>Previously any goods imported was taxed on the import price. </p><p>GST works like this....</p><p>Importer of goods pay GST at import price</p><p>Importer sells to agent and their selling price plus GST on that price, Importer then claims back GST at imported price</p><p>Agent sells to dealer at his price plus GST then claims back GST paid on importer sales price</p><p>Dealer sells to workshop at his price plus GST then claim back GST on agents price</p><p>Finally workshop sells to you at his price plus GST and claims back GST on dealers price</p><p>So you being the end consumer that is the final GST paid to G.</p><p>So GST is paid on the last highest price, even though at 6% seems lower than old tax percentage, the 6% is calculated on final selling price and old tax is paid on lower import price. If profit margin along the way is high means the tax can be even higher even though the percentage is lower.</p><p>Moreover now have to pay GST on the workmanship too....<img src="https://zerotohundred.com/forums/styles/default/xenforo/smilies/banghead.gif" class="smilie" loading="lazy" alt=":banghead:" title="Banghead :banghead:" data-shortname=":banghead:" /></p></blockquote><p></p>
[QUOTE="vr2turbo, post: 1064692327, member: 92229"] Same every where. That is why GST is not good because it is calculated on the last sale amount. Previously any goods imported was taxed on the import price. GST works like this.... Importer of goods pay GST at import price Importer sells to agent and their selling price plus GST on that price, Importer then claims back GST at imported price Agent sells to dealer at his price plus GST then claims back GST paid on importer sales price Dealer sells to workshop at his price plus GST then claim back GST on agents price Finally workshop sells to you at his price plus GST and claims back GST on dealers price So you being the end consumer that is the final GST paid to G. So GST is paid on the last highest price, even though at 6% seems lower than old tax percentage, the 6% is calculated on final selling price and old tax is paid on lower import price. If profit margin along the way is high means the tax can be even higher even though the percentage is lower. Moreover now have to pay GST on the workmanship too....:banghead: [/QUOTE]
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How GST works at workshops