When is the new GST rate applicable generally?
The new rate applies to GST that becomes payable on or after July 1, 2006 without having been paid before that day. If a customer was invoiced before July 1, 2006 for the sale of goods or services and the customer pays the invoice after July 1, 2006, which rate of GST applies? Since the GST became payable before July 1, 2006, the 7% rate applies. If a customer took ownership and possession of goods in April 2006 under an agreement whereby the invoice would be sent out in July 2006, which rate of GST applies? The GST became payable at the end of the calendar month following the month in which possession of the goods took place (i.e. May 31, 2006). Therefore, the 7% rate applies. A customer bought a vacuum cleaner under a conditional sales contract whereby he took possession of the cleaner on May 1, but will not receive ownership of the cleaner until the last payment under the conditional sales agreement is made. Which rate of GST applies? The 7% rate applies to the payments made in May
