GST, BAS and activity statements

GST credit

A GST credit is the amount a GST-registered business can claim back for the GST included in the price of things it buys for use in its business. The credit is claimed on the business activity statement for the period in which it is entitled to claim it. To claim, the business must be registered for GST, the purchase must be for a creditable purpose, and for purchases above the ATO's threshold it generally needs to hold a valid tax invoice. No credit is available for purchases used to make input taxed supplies, such as residential rent, or for private use. Where a purchase is partly private, only the business share is claimed.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.