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Steve operates a plumbing business and is registered for GST on a quarterly basis. Steve accounts for GST on a non-cash basis. Steve has made
Steve operates a plumbing business and is registered for GST on a quarterly basis. Steve accounts for GST on a non-cash basis. Steve has made the following acquisitions during the March quarter: • The purchase of plumbing supplies on credit for $5,500. Steve holds an account with his supplier and this amount represents his total purchases for the quarter. On 31 March, Steve made a payment of $3,300 on his account. He holds valid tax invoices. • The purchase of hydraulic equipment for $11,000 on 1 February. He paid the invoice in full on this date and holds a valid tax invoice. • The payment of $220 in interest on his business loan during the March quarter. What is the value of Steve's total GST input tax credits for the March quarter? [A] $1,000 [B] $1,300 [C] $1,320 [D] $1,500 [E] $1,520
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