A GST-registered developer in Victoria sells a new apartment for $750,000 including GST and does not use the margin scheme. What is the GST component of the price?
Correct Answer
D) $68,182
When the sale price includes GST, the GST component is calculated as: Sale Price ÷ 11 = $750,000 ÷ 11 = $68,182. This represents the 1/11th GST component that must be remitted to the ATO. The GST-exclusive price would be $681,818.
Why This Is the Correct Answer
When a price includes GST, the GST component is one-eleventh of the price: $750,000 ÷ 11 = $68,182. The GST-exclusive price is $681,818, and 10% of that is $68,182.
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A property developer in Queensland sells a new townhouse for $550,000 including GST. The developer is registered for GST and the margin scheme does not apply. What amount of GST must be remitted to the ATO?
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A GST-registered developer buys land for $200,000 including GST and builds a new house, which it sells for $550,000 including GST. Ignoring construction costs and assuming full input tax credits on the land, what is the net GST payable to the ATO?