Goods and Services Tax Law †Free Samples to Students

Question: Discuss about the Goods and Services Tax Law. Answer: Introduction: The current case study is based on Ming and Tori who decide to sell their book shop after being approached by one their major competitor to purchase their business. Section 32-325 of the GST Act GST Act In spite of goods and service tax was introduced during the last decade the going Management concept of going concern exemption and the criterion that needs to be complied in order to qualify for the exemption along with the tax benefits, which is accompanied by the sale of business as the going concern. As stated under Section 32-325 of the GST Act the sale of business for Ming and Tori will be considered as the GST-free supply since the business was the going concern at the time of selling (Yong and Ma 2015). Furthermore, the sale of business was the payment or consideration, which the purchaser and the seller have agreed that the supply forms the part of going concern. According to the Australian taxation office and the sale of business will qualify for the GST exemption Management under the going concern as the operating business at the time of transferring the purchaser (Tang 2016). According to the GST Act, it is stated that the supply of going concern will be considered as tax free on satisfaction of each of the following; The sale occurring for considerations The buyer is required or registered to be under the GST The parties have also decided in writing that supply is of going concern. As evident in the current case study, Ming and Tori can apply for the going concern exemption in order to reduce their tax consequences since the business at the time of selling was considered to be a going concern and such sale would be regarded as GST exempted. This will provide the purchaser of not providing any extra finances to cover the GST and pay less up for the business. Reference list: Tang, C., 2016. Australian GST update2015.World Journal of VAT/GST Law,5(1), pp.32-41. Yong, S.E. and Ma, M., 2015. A comparative study of the Goods and Services Tax (GST) implications Management on real property transactions in Australia and New Zealand.