What is the meaning of hire purchase for GST purposes?
For GST purposes, hire purchase has the meaning given by section 995-1 of the Income Tax Assessment Act 1997. Essentially, hire purchase agreements represent financing arrangements which facilitate the sale and purchase of goods. Accordingly for GST, hire purchase agreements will be treated as a sale of goods and a separate supply of finance. Hire purchase agreements are not progressive supplies and do not fall under Division 156 of the GST Act. The attribution rules are the same as for any supply of goods under an ordinary sale agreement.
Related Questions
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