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GST for purchase of residential premises

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Newbie

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Replies 1

An individual purchaser is under a contract to purchase a new residential house, which currently has a tenant under a Residential tenancy agreement. The Vendor (also the developer) has added a Commercial Lease for vegetation management on the land, and the developer is both the landlord and tenant under the commercial lease.

The Vendor is requesting the Purchaser to register for GST so that the transaction can be GST free as a sale of supply of going concern due to the commercial lease, however the property's main use is residential and the purchaser's intention is to also use it as residential property since it is a house.

 

Should the purchaser register for GST so as to satisfy the contract for sale of property, if so, can they register for GST? Or is it the vendor's responsibility to pay or have withheld the appropriate GST amount determined before settlement of the purchase?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 0

Hi @MyProperty,

 

We will check into this one for you.

 

Thanks

 

KylieS

1 REPLY 1

Most helpful response

Community Moderator

Replies 0

Hi @MyProperty,

 

We will check into this one for you.

 

Thanks

 

KylieS