Some goods and services are sold without GST in their price, even though GST was included in the price of the ‘inputs’ used to make or supply them. These sales are known as input-taxed sales.

The most common input taxed sales are financial supplies (such as lending money or the provision of credit for a fee) and selling or renting out residential premises.

Consider the following example.

Hayley runs an appliance store and sells a fridge to Louise for $1,100 (including $100 GST).

Hayley sells the fridge to Louise on credit and charges interest on the credit.

As providing credit is a financial supply, Hayley cannot include GST on the amount of interest she charges Louise.

Additional information on Input-taxed sales is available on the ATO website.