Priti operates a florist shop in Barton, doing a brisk trade selling fresh flowers to public servants working in the area. Priti employs a student to help her in the shop. The business is operated from rented premises.

Priti also owns several residential properties which she rents out to tenants.

Assume Priti is registered for GST in respect of the above and accounts for GST on an accruals basis.

For the quarter ended 30 September 2022, the following transactions were reported in the accounting records maintained by Priti:

Receipts (inclusive of GST where appropriate)

	$
Revenue from selling flowers	110,000
Rent from Tenants	55,000

Expenses ( Inclusive of GST where appropriate)

	$
Rent from premises used for florist shop	11,000
Wages for shop assistant	22,000
Fresh flowers from wholesaler	66,000
Plumbing repairs to residential premises	1,100
New curtains for florist shop( tax invoice not received)	3,300
Repayments of loan used to buy residential premises	7,700
New offfice chair for Priti- used 75/25 for managing the florist shop and her investment properties	2,200

Priti wants to know she has to charge GST on the suppliers she makes and whether she can claim input tax credits on her acquisitions.

Required

Consider the following answer to the questions submitted by a Minnie, a student in a similar unit to your unit:

Taxable Suppliers

Supply	Taxable Supply ? Yes/No	GST Payable $
Revenue from selling flowers	Y	10,000
Rent from tenants	N	0
Rent for premises used for florist shop	Y	1,000
Wages for shop assistant	N	0
Fresh flowers from wholesaler	Y	6,000
Plumbing repairs to residential premises	Y	100
New curtains for florist ship	Y	300
Repayments of loan used to buy residential premises	N	0
New office chair for Priti- used 75/25 for managing the florist shop and her investment properties	Y	200

Creditable Acquisitions

Acquisition	Creditable Acquisition Yes/No?	Input Tax Credit $
Rent for premises used for florist shop	Y	1,000
Wages for shop assistant	N	0
Fresh flowers from wholesaler	Y	6,000
Plumbing repairs to residential premises	N	0
New curtains for florist ship	Y	300
Repayments of loan used to buy residential premises	N	0
New office chair for Priti- used 75/25 for managing the florist shop and her investment properties	To the extent that the chair is used for managing the florist shop	150

Using legislation, case law and IRAC problem-solving technique, answer the following questions: a) Explain whether you think Minnies answer would score high marks for the use of IRAC problem-solving technique (do not consider as yet the correctness of the answers). If you dont think it would score high marks, offer some suggestions as to how the answer could be improved. 3 Marks b) Minnies answer has incorrectly identified the taxable supplies that Priti makes and the GST payable. Explain why that is the case. Provide an analysis of how the law applies to each supply that Priti makes. [6 marks] c) Minnies answer has correctly identified the creditable acquisitions in the question. Provide an analysis of how the law applies to each acquisition that Priti makes. [8 marks] d) What are the implications of a tax invoice not being received for the curtains. [3 marks]