Question

The goods and services tax​ (GST) is a federal tax charged on the cost of almost all goods and services.​ GST-taxable goods and services are taxed at

5​%.

When Fred of​ Fred's Auto Repair tallied up his accounts at the end of the​ year, he found he had paid GST on parking fees of

​$2000​,

supplies of

​$55,000​,

utilities of

​$4000​,

and miscellaneous eligible costs of

​$3300.

During this same​ time, he found he had charged his customers GST on billings that totalled

​$175,000

for parts and

​$165,650

for labour. How much GST must Fred send to the​ government?

Answer 1

Gst payable to the government= GST received from customers-GST paid by the assesse

• Gst received from customers= 175000+165650= 340650
• GST Paid= 2000+55000+4000+3300= 64300
• GST payable to government= 340650-64300= 276350