Assignment task: Benny operates a banana shop. His 2021-2022 GST turnovers is $1,831,044 and his projected GST turnover is $651,058. In the 2021-2022 tax periods he lodges a 3-month BAS statement. His aggregated turnover is less than $2 million. All sales are in cash and expenses are paid in cash. In this period he:
- sells $88,000 of bananas to be consumed by people and also has $22,000 sales for cold lemonade drinks (gross amounts including GST if applicable)
- pays $6,600 rent for his shop (gross amounts including GST if applicable)
- pays $2,200 electricity (gross amounts including GST if applicable)
- pays $1,100 water rates (gross amounts including GST if applicable)
- pays wages $11,100 (gross amounts including GST if applicable).
He also has a decreasing adjustment of $400 in this period.
Requirement:
1. Should he register the business for GST? Provide brief reasons and section(s).
2. Calculate his GST collections for this current 3-month tax period.
3. Calculate his input tax credits for this current 3-month tax period.
4. How much GST is payable/refundable for this current 3-month tax period?