The Government calculates the GST on the goods and services supplied by businesses, but it only uses the rates it receives from the Australian Taxation Office (ATO).
A company must pay the GST if it produces goods or services that it sells in Australia and it must collect it on behalf of customers.
If a business supplies goods and/or services that don’t meet the GST definition of “goods” then it doesn’t pay GST.
But the ATO only uses GST rates to calculate the GST, and there is no other way for the Government to calculate GST.
For more information about the GST process, click here.
Source: ABC News (Originally published November 11, 2018)