GST Input Tax: Non-business or private use of business assets

Key requirements

Where the owner bears GST on free private or non-business asset use, the user cannot claim that tax. If a GST-registered user instead pays the deemed output tax, the owner may issue a tax certificate describing the goods and tax based on the full cost of providing the use. The certificate must identify it as such and state that the recipient paid the deemed GST. It supports a claim subject to the normal input conditions; a normal tax invoice is not the prescribed document for this deemed free service. On the owner’s side, the deemed charge generally requires allowed purchase or import input tax. A car with blocked acquisition tax illustrates why a private-use event does not always trigger output tax.