The GST application on new residential premises is important to be understood since you could be liable to pay GST and claim GST on it. The new residential premises are treated for GST in a different way than the old residential premises. The new residential premises is considered new if it has never been sold previously; it has been build or created through renovations; or has been replaced by new building upon demolition of the old construction.
Furthermore, the residential premises will not be considered new, if it was rented for a period of five years immediately following the period it was considered as new. However, if it was not rented out, then it may still be considered new after the period of five years. The new residential premises will allow GST credits for any purchase made upon the sale of the premises and GST outlay on the sale.
Existing residential premises are not eligible for GST credits and it is recommended that the tax payer consults a tax specialist prior to their claim for rebate.