Butch Cassidy

Saw our liaision today who told us that although the govt will be reducing gst as of July 1st they will still be charging 7%.
Any comments on the legality of this??

Calgal

I'm no expert, Butch - but I would think if money is changing hands after the new GST law kicks in, then you should pay the new rate of 6%

Steve_P

I'm not sure of the legallity of still charging the 7 % GST but I can see where it comes from.

The builder and all his subs will have paid the GST prior to July the first so would have paid 7% and most likely don't want to be stuck eating the 1%.

It makes for an interesting transition.

Cheers
Steve

dingbat

If the agreement to purchase was made before May 3 2006, they can do this.

http://www.cra-arc.gc.ca/E/pub/gi/gi-015/gi-015-e.pdf

Calgal

That makes sense Steve, I hadnt thought of it like that. Although of course, materials bought toward the end of building for finishing the exterior etc, the builder will get the benefit of the 1% difference in GST.