1. GST would not apply to the sale of fruit by a supermarket. From S38-2, supplies of food are GST-free unless the legislation provides that a specific category food is not. The overall effect of S38-2 is that most food for human concumption is GST-free, and GST typically does not apply to fruit, vegetables, meat products, fish, bread, cheese, eggs, milk, sugur, tea or coffee. In this circumstance, the sale of fruit by a supermarket is GST-free. 2. The loan of a DVD by a video store should charge GST. As S9-10, a supply includs the supply of goods or services. The video store supplies a loan service to the customer, therefore, GST is paid by the customer. 3. GST would apply to the sale of books by a book store, because the sale of books is a supply of goods under S9-10. In Division 38, the educational material is GST-free, however, in S38-100, educational material does not include textbooks. Therefore, even the book is a textbook, it is not still not GST-free. 4. GST is payable for the supply of a meal in a reataurant. Even meal is food, which should be GST-free under Division 38-2, in SCh 1(S38-3(1)(c) ), items of food, or food “of a kind” are excluded from GST-free, including prepared food, confectionary, savoury snacks, bakery products, ice-cream food and biscuit goods. Therefore, a meal, which is a kind of prepared food, should not be GST-free. 5. GST would not apply to the opening of a bank account. If a supply is input taxed, no GST is payable on the supply, and the input taxed supplies include financial supplies under Division 40. The opening of a bank account is a financial supply, therefor, it is input taxed. 6. Since the sale of residential premises not input taxed if they are new residential premises other than those used for residential accommodation before 2 December 1998 (Sec40-65 GST), 10% of GST must be added. 7. The supply of goods in general is GST-free if the supplier exports them from Australia before, or within 60 days (or...
Please join StudyMode to read the full document