Goods and services tax (GST)paid on the purchase of an asset is recoverable only if the asset acquired is used in the business as property, plant, and equipment.

Question

Quizplus · Accepted Answer

GST paid on the purchase of an asset can be recovered not only when the asset is used as property, plant, and equipment in the business, but also when the asset is used for other business purposes, such as for resale or as part of the inventory, provided the business is registered for GST and the purchase is for business purposes.

Goods and Services Tax (GST)paid on the Purchase of an Asset