All the businesses, sole traders, partnerships and trusts registered for GST can claim on the GST component of purchase made in the course of earning their income.
Identifying GST amount is as easy as spotting a mole and can be found on the all the tax invoices. Moreover, any of the above mentioned entities can register for GST, however, the tax office mandates the registration for GST for entities with an annual GST turnover of more than $75,000.
As per law, there are certain items of goods that are exempt from GST credits which meas that no GST can be claimed on such items. The differentiation amongst such items is important and is often complex.
There is ample regulation behind the record keeping and invoices that should be available to make valid claims for GST. For example, if the price of a purchase is less than $82.50, no invoices are required to be retained to claim GST credits.
The GST is lodged through a Business Activity Statement governed by a separate legislation to the Income Tax. Therefore, It is advisable that you contact a registered tax agent to deal with your GST dealings, as the entire process can become very cumbersome.