question
Q: As a builder using non-GST-registered contractors, do I add GST to the principal (before margin) when charging the client? Or does the client not pay GST for that service, as the contractor is exempt?
e.g.
Scenario A:
Contractor GST exempt -$100
Margin 15% - $15
GST - $11.50
Total - $126.50
or, Scenario B:
Contractor GST exempt -$100
Margin 15% - $15
GST - $1.50
Total - $116.50
