How to avoid gst on imports

Goods and services tax (GST) is payable on most goods imported into Australia (taxable importations). GST on a taxable importation is payable by businesses, organisations and private individuals, whether they are registered for GST or not.

Exceptions to Import Duties

You will need to complete a Self Assessed Clearance declaration (SAC declaration) to clear these goods through the Australian Customs and Border Protection (CBP). You must complete the SAC electronically. Any goods that you import into Australia by post do not require a SAC declaration.

On-sale of imported goods

GST is payable on most goods imported into Australia. If you are registered for GST and import the goods for a creditable business purpose, you can claim an input tax credit for the creditable importation.

Things you buy over the internet will have the same rules, duties and screening processes applied as any other import. However, From 1 July 2018, the Goods and Services Tax (GST) may be collected by overseas vendors of such low value goods when imported from overseas by consumers in Australia.

The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services.

The dealers registered under GST (Manufacturers, Wholesalers and Retailers and Service Providers) are required to charge GST at the specified rate of tax on goods and services that they supply to customers. The GST payable is included in the price paid by the recipient of the goods and services.

If your GST turnover is below the $75,000, registering for GST is optional. You may choose to register if your GST turnover is below the $75,000 threshold, however this means that once registered, regardless of your turnover, you must include GST in your fees and claim GST credits for your business purchases.

Items that are exempted from GST are live fish, fresh fish, bird’s eggs in the shell, fresh milk, fresh ginger, garlic, grapes, melon, unroasted coffee beans, unprocessed green tea leaves, etc. Corn, rice, wheat, maize, soybean, hulled cereal grains, etc.

You can avail GST exemption if you earn less than Rs. 20 lakh across all financial products irrespective of your physical location. Ask us: I am an IFA from Mysore, Karnataka.

GST does not apply to sales of low value imported goods made to Australian GST-registered businesses making the purchase for business use. The entity that charges GST on these sales can be the merchant who sells the goods, an electronic distribution platform operator, or a re-deliverer.