The GST rates, functions, and related business details keep on evolving with news government policies and updated administrative procedures. When new regulations come in place, you need to adjust your business strategies and import plans accordingly, to work n tandem with the freshly set rules. It is always helpful to know a thing or two about GST in the Australian market from a fundamental perspective.
The New GST rule
Previously, for an import value of AUS $ 1000 (or lesser) goods, you did not have to pay any GST. But this rule has been upgraded and has been in effect since July 1, 2018. According to the new GST rule on low cost imported goods, you are required to pay a 10% tariff on imported goods even if their total value is $ 1000 (or lesser). This new rule, centered on GST and imported Goods, bears special importance the way your business works and on its prospects in the near future.
Governmental support to local sellers
An obvious question has been going rounds – What is the exact benefit of the new GST rule? The regulation has been enacted to particularly benefit the local sellers in the Australian market who compete against companies that import the same goods. The local small businessmen already pay a 10% tax to the government for any amount of goods they sell to consumers. Trade experts have opined that the new rule regarding GST and imported Goods will bring both the local sellers and the importers on the same pedestal.
Creating a competitive environment
The new GST rule has also been touted as a rational administrative policy to create a healthy competitive environment in the domestic market. The local sellers and imported would compete against each other through more efficient retailing of goods.
Consulting Accounting & Taxation service provider
If you are a merchant who relies on imports or a franchise owner with a shop of an overseas company, then you must seek technical guidance from a reputed Accounting & Taxation service provider to efficiently manage all the aspects related to GST and imported Goods. A good consulting company will help you financially, leading you to a comfortable position to avoid GST-related unnecessary legal and administrative complexities. A holistic assessment of the nature, volume, and total value of imported goods is undertaken, helping your business to remain prepared in a competitive environment.
Refunding on double payment of GST
It may occur that you have paid twice for the same consignment of imported goods, once at the point of sales, and the second time at the border. In such a situation, you are eligible to ask for a refund for your double payment. You need to show the relevant trade and tax documents to process the refund.
Visiting government website
The intelligent thing to do, as a businessman importing goods, is to visit the official website of ATO and go through the relevant guidelines about the new GST rule and its impact on import goods.