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What is gst taxable

 
1 Reply
bryant1
Intuit Alumni

What is gst taxable

The Canada Revenue Agency categorizes goods & services into three groups:

  • Taxable – GST/HST is charged, collected and remitted. As a registrant, you may also claim credits (called Input Tax Credits, or ITC’s) for GST/HST paid to produce the goods and services.
  • Zero-rated – GST/HST is not charged, collected or remitted, but as a registrant, you can claim ITC’s for GST/HST paid to produce the goods and/or services. If your business is selling cucumbers at the farmer’s market, for example, no GST/HST is charged/collected from your customers because fresh vegetables are zero-rated.  Also, if you are selling your services to businesses outside of Canada that are not registered, those sales would be classified as zero-rated as well.
  • Exempt – GST/HST is not charged, nor collected and as the registrant, you can not claim ITC’s for any GST/HST paid. Examples of exempt services include music lessons and childcare fees.

 

For more information, please read our article,  here