We are currently winding up a partnership business and sorting out assets owned by the business. Our business partner is refusing to pay the gst portion of the assets he has agreed to purchase. His view is that he does not have an ABN so cannot claim the GST back therefore is refusing to pay the gross figure, only the net figure, excluding GST.
Is this acceptable?
Generally, GST would still be 1/11th on taxable sales. I think it would easier to understand if you look at the 'unpaid' GST as a discount.
Thank you. Does that apply to ourselves also? We purchased farm assets but paid the GST as required.
I'm not too sure what you're question is asking about.
Whether or not there's GST on something, depends on the GST registration and if the goods or service is a taxable sale. If not fully paid for or not fully collected the GST would need to be apportion. E.g. Have an invoice $110 with $10 gst. Only paid/collected $100 and $10 is not paid/collected. Then it's $100 and $9.09 GST in it.
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