GST is commonly referred to as a consumption tax because it works to tax only the final consumption of most goods and services in Australia. This is because: Question 19Answer GST is offset by any income tax a company has to pay GST is added at each point of supply and accumulates through the process GST equals the corporate tax rate so is not an imposition on a company GST is added to each supply made by a GST-registered entity, but credits may be claimed for the GST paid on supplies and used to operate the business