Could anyone explain to me in which context Bank Charges and Interest Paid are GST Free Supplies (as listed on the “Types of supplies” table in the manual)? I have checked the ATO website for GST free products & services and can’t find these two items on the list. thanks
For types of supplies they are both always free of GST, however one is in relation to making input tax supplies as it is a financial supply and the other depends on the type of charge from the bank, it can also be a financial supply or a standard GST free charge. the only time it would involve GST is when it is a type of supply that attracts GST such as merchant bank charge for example.