GST code for residential property

What is GST code for material purchased in order to build residential property?
Thanks

Asked on April 9, 2018 2018-04-09 06:07:29 Business (商家)
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2 Answer(s)

I have suggested 2 tax code for you to refer to.  See which one is more appropriate to your business activity.

TX-ES  –  Tax rate : 6%

Purchase with GST incurred directly attributable to exempt supplies, and only applicable for partially exempt trader/mixed supplier. (Note: Rename of TX-N43).

This tax code should be used for transactions involving the payment of input tax that is directly attributable to the making exempt supplies, and only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader). TX-ES only include in field 6a & 6b of GST-03 return once the de minimis rule is fulfilled. Example for this tax code is your company bought wall paper for your residential apartment rented to others and purchase costs are already included 6% GST, but you are not eligible to claim the amount of input tax as it would be applied directly to make exempt supply (rental of resident apartment).

TX-RE  –  Tax rate : 6%

Purchase with GST incurred that is not directly attributable to taxable or exempt supplies, and only applicable for partially exempt trader/mixed supplier.

This refers to GST incurred that is not directly attributable to the making of taxable or exempt supplies (or commonly known as residual input tax), and only applicable to GST registered trader that makes both taxable and exempt supplies (or commonly known as partially exempt trader/mixed sup plie r). However, a mixed supplier can claim the full amount of the residual input tax incurred if the amount of exempt supply fulfilled the de minimis rule. Otherwise, he is required to apportion the residual input tax incurred accordingly. The example is such as residual input tax on operation overhead for a development of mixed property (properties that including residential and commercial).

Answered on April 9, 2018. 2018-04-09 06:20:30
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Or you may even use tax code : ZP

This refers to goods and services purchased from GST registered suppliers whereas GST is charged at zero-rated or not subject to GST. This is also commonly known as zero-rated purchases. This purchases are including an exempt supply are prescribed in GST (Exempt Supply) Order 2014.

Please go through your business activity and the accounting transaction before deciding which tax code to use.

Answered on April 9, 2018. 2018-04-09 06:24:42
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