In this blog, we are going to look at how to calculate and prepare a GST return.
ABC Inc. has following information for the 1 April – 30 June 2022 quarter.
Excluding GST GST
Sale of widgets
In Alberta $100 000 $5 000
To USA $20 000 0
Purchases
Materials $10 000 $500
Stationery for office $1 000 $50
Meals and entertainment [for business] $800 $40
New machinery $50 000 $2 500
Prepare the GST return.
Example Solution
Most important lines on the GST return –
Line 90 – Taxable sales made in Canada [Report net of GST] $100 000
Line 91 – Zero-rated exports $20 000
Line 101 – Total sales revenue $120 000
Line 105 – Total GST/HST [owing on sales] $5 000
Line 108 – Total input tax credits ($3 070) *
Line 109 – Net tax owing $1 930
Filing and payment deadline >>> 31 July 2022 [One month after the end of the quarter]
* Made up as follows :
Materials - $500
Stationery - $50
Meals and entertainment [$40/2] - $20
Machinery - $2 500
Total - $3 070
