Gross Margin Scheme

Key requirements

Complete the eligibility self-review before use. GST on a profitable qualifying sale is selling price less purchase price, multiplied by 9/109; a loss-making sale has no GST, but its loss cannot offset a different sale’s profit. Report the selling value excluding that tax, not merely the margin, in Box 1. GMS does not cover services or land rights. Issue an ordinary sales invoice with the required scheme statement, without a tax invoice or separately shown GST. Neither seller nor buyer claims input tax on those goods. A buyer cannot recover an assumed GST fraction simply because the GMS seller is registered.