GST Automated Blocked Input Tax Claims (BL)

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Under Regulations 26 and 27 of the GST (General) Regulations, GST incurred on certain categories of expenses cannot be claimed as input tax by a GST-registered business.
Specifically, a GST-registered business is not allowed to claim input tax incurred on the following categories of expenses:

 Club subscription fees charged by sports and recreational clubs;

 Medical expenses and medical / accident insurance premiums incurred by staff, unless they are obligatory under the Work Injury Compensation Act or under any collective agreement within the meaning of the
   Industrial Relations Act;

 Benefits provided to family members or relatives of staff;

 Costs and running expenses of motor cars (except Q-plated cars with COEs issued before 1 Apr 1998);

 Expenses associated with any transaction involving betting, sweepstakes,lotteries, fruit machines or games of chance.

As GST incurred on these categories of expenses cannot be claimed as input tax, it is known as “blocked input tax” and should not be reported in the GST return.

: Preset chart of accounts with blocked purchase tax code

 


At [Setup] , click [Chart of Accounts]

         

 

 

 

       

Some of the accounts code set as [BL]

 


 

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