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| GST & Pricing |
| The Federal Court has recently held that the failure to show a GST-inclusive price for goods and services could, in some circumstances, be considered misleading or deceptive and, as a result, contravenes the Trade Practices Act 1974. |
Where GST is applicable to the provision of goods and services, the full price inclusive of GST, or the exclusive price together with the GST payable, should be shown.
Where GST exclusive prices are used, substantial prominence should be given to alerting purchasers that the prices do not include GST.
This is probably important in quoting eg it would be necessary to quote $100 plus $10 GST.
It could be expensive for you if the customer only pays the quoted price, yet you have to pay one-eleventh to the Australian Taxation Office. Beware ? this possibility is quite real if your quoting procedure is flawed.
Your customer claims the GST and you are out of pocket.
22nd-October-2003 |
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