GST classification on Rebates

ROB PAYNE
ROB PAYNE Member Posts: 40 Reckoner Reckoner
in Reckon One

Hi all

Wondering what class to classify an income rebate. ie GST or NCG

eg We get paid a rebate by one of our suppliers for certain sales of products

  • they give us an invoice for the rebate - say $1000 with GST included $90.90

In theory we are getting a rebate of $1000 — they are providing an invoice for the $1000 ( so they are collecting for the ATO GST of $90.90…. so do we claim the GST as NCG but with an income of $1000 as the rebate

eg

NCG - PURCHASE/ACQUISITION OF NON-CAPITAL ITEMS SUBJECT TO GST

Date "Receipt " Rebate -$909.10 NCG -$90.90 TOTAL - $1000

Appreciate the help - it is sometimes so confusing on classification of certain tax items.

thanks

ROB

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