Glossary term
GST
Goods and Services Tax: a consumption tax charged on imports and generally zero-rated on exports.
A broad-based consumption tax operated by India, Australia, Canada, Singapore and others, equivalent in structure to VAT.
At import, GST is normally charged on a base that includes the customs value plus duty, so it is calculated on top of duty rather than alongside it. Exports are typically zero-rated - the supply carries no output tax and input credits remain claimable, which is not the same as being exempt.
Registered importers can usually recover import GST, which makes it a cash-flow cost rather than an absolute one. A non-resident that cannot register often cannot recover it, which is what makes DDP expensive.