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GST Beginners guide: Registration process of GST - KPG Taxation

Registering for GST Do you have to register your business for GST? You must register for GST if any of the following apply:

  • you are in business and your annual business income is $75,000 or more a year (or you think it will be) or $150,000 or more for non-profit organizations.
  • you provide taxi travel as part of your business. Taxi travel means transporting passengers by taxi or limousine for fares.
  • you want to claim fuel tax credits.

If your annual business income is less than $75,000 (or $150,000 for non-profit organizations), you don’t have to register for GST but you can choose to register. Registering for GST means you can claim back the GST you pay on goods and services you buy for your business – but only if you have a tax invoice from your supplier.

Example Sarah’s bakery sells a variety of pre-packaged drinks, including soft drinks and flavored milk such as chocolate milk. Every three months, Sarah purchases 200 prepackaged chocolate milk from her supplier for $110 including GST. She receives the invoice from her supplier, and she pays the supplier $110. As Sarah’s business is registered for GST, she can claim $10 as GST credit from the ATO. Sarah needs to keep her tax invoice to do this.