What is Goods & Services Tax

A goods and services tax (GST) is a value-added tax that is levied on the supply of goods and services. The GST is levied at each stage of the supply chain, from the production of goods to their eventual sale to consumers. The GST is imposed on the final consumption of goods and services in the economy.

The GST is a consumption tax, which means that it is levied on the consumption of goods and services. The GST is not a tax on income or profits. It is a tax on the value of goods and services consumed in the economy.

The GST was introduced in Australia in 2000. The GST is imposed at a rate of 10% on most goods and services sold in Australia. Some items are exempt from the GST, such as food and medical supplies.

The GST is collected by the Australian Taxation Office (ATO) and is paid to the government. The ATO is responsible for administering the GST.

The GST is a relatively new tax in Australia and there are still some issues with its implementation. For example, some businesses have been incorrectly charging the GST on items that are exempt from the tax. This has led to confusion and frustration for many consumers.

The GST is an important part of the Australian tax system and is expected to continue to play a vital role in funding the government's activities.