Mr Toshinori Takano is an architect (a person who designs and constructs buildings), and operates his own business in Melbourne. He also owns several small hotels in Australia for domestic travellers to stay short-term.

Mr Takano is registered for GST and accounts for GST on a cash basis. He has also elected to lodge his Business Activity Statements ("BAS") on a quarterly basis with the ATO.

The following information relates to his two businesses for the quarter ended 30 June 2023. Where applicable, amounts shown below are inclusive of GST.

Cash receipts $

Gross income from architectural services	165,000
Gross income from hotel room charges	55,000
Interest income (arising from the maturity of a term deposit with the bank)	220

Cash payments $

Purchase of stationary supplies for the architect's drawing room	44,000
Bank charges for the engineer's bank account	100
Purchase of pre-prepared catered meals for VIP guests at the hotel	27,500

Required: Advise Mr Toshinori Takano of his GST obligations for the quarter ending 30 June 2023. In your answer, you must determine whether any GST is payable (and how much) on his receipts and whether he is entitled to any GST input tax credits (and how much) for his payments. You may assume Mr Toshinori Takano has received a valid tax invoice for all relevant payments.

Please support your answer with relevant legislation and show any relevant calculations.

You do not need to write anymore than 400 words (a 10% allowance will be allowed, ie up to 440 words). Any response exceeding this word limit will not be read.

Answer rating: 100% (QA)

Statement Showing Caluculation of GST Payable Refundable Amount Particulars ... View the full answer