Josh, as well as his friends Guy and Sandy, have dipped their toes into the grey market, and are now wondering if they will have to pay GST (Goods and Services Tax). Unfortunately, they find the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) too daunting to find out themselves. Will you be able to help them?
This problem has been taken out of Understanding Taxation Law 2011 (see bibliography for full citation), and the GST Act as of 1 November 2010 has been referred to.
How to attract the tax collector
In the GST Act:
- s 7-1 says that "GST is payable on taxable supplies and taxable importations".
- s 9-5 says that a taxable supply is made if a supply is made for consideration in the course or furtherance of an enterprise carried on, if it is connected with Australia and the supplier is registered or required to be registered.