Answer to Question #78822 in Finance for Liam Johnston

Question

An item’s GST free cost is $750.00. How much GST should be added? What is the GST inclusive cost?

Answer 1

Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. You don't include GST in the price if your product or service is GST-free. You can still claim credits for the GST included in the price of purchases you use to make your GST-free sales. In this case, we must add 10% of $ 750.00. It is $75