New GST payments to be sent out on April 5th 2024
On April 5, 2024, the Canada Revenue Agency (CRA) will distribute quarterly HST/GST payments to eligible Canadian taxpayers.
Every quarter, individuals and families with low to modest incomes receive the GST/HST credit. This non-taxable payment assists in offsetting the goods and services tax and harmonized sales tax (GST/HST) they have paid.
What is GST?
GST, or Goods and Services Tax, is a tax levied on most goods and services in Canada. A 5% surcharge is applied to various items such as groceries, rents, and imports. The Canada Revenue Agency (CRA) oversees the administration of this tax, aiming to encompass almost all transactions from production to sale.
The concept of "input tax credit" is pivotal to GST. This mechanism allows businesses to reclaim GST paid on purchases and business expenses, effectively reducing their overall tax liability like a credit.
Businesses can offset the GST they paid with the GST they earned from sales. This results in lower tax payments for businesses, which is advantageous for them. The average Canadian taxpayer receives a portion of this GST back through a quarterly GST rebate payment, distributed every three months.
Eligibility for GST Payment
You qualify for this credit if you are considered a resident of Canada for income tax purposes at the start of the month when the CRA issues the payment.
Additionally, you must be at least 19 years old in that month before the CRA disburses the quarterly payment. If you are under 19 years old, you must fulfill at least one of the following conditions within the same timeframe:
- You are currently married or have had a common-law partner.
- You are a parent who either currently lives with your child or has done so in the past.
How to Claim GST/HST Credit
Even if you didn't earn any income in 2022, it's important to file a tax return to receive the GST/HST credit along with any applicable provincial and territorial credits.
If you are a newcomer to Canada, including foreign students, work permit holders, or permanent residents who arrived in 2023, you can follow one of the methods below to claim the GST/HST credit:
- Non-parent:
Fill out Form RC151, Application for GST/HST Credit and Climate Action Incentive Payment for Individuals Who Become Residents of Canada, for the tax year you became a Canadian resident. - Parent:
Complete Form RC66, Canada Child Benefits Application includes federal, provincial, and territorial programs, to apply for all child and family benefits. Mail this form along with Form RC66SCH, Status in Canada and Income Information for the Canada Child Benefits Application, which includes your citizenship, residency details, and Statement of Income.
What is your maximum HST/GST payment amount?
The maximum HST/GST payment amounts for the 2022 base year (GST payment period from July 2023 to June 2024) are as follows:
- $496 for a single person
- $650 for married or common-law spouses
- $171 for each child under 19 years old
How is the payment of GST/HST computed?
The computation of your GST/HST payment is based on the information provided in your 2022 tax return. You would have received a notification in July 2023 from the CRA if you qualify for the GST/HST credit after they reviewed your tax return. This notification contains the necessary details for calculating your payment amount.
To estimate your GST/HST credit, you can use the official CRA Child and Family Benefits Calculator.
What days will GST be due in 2024?
The CRA utilizes information from your prior tax return to compute the HST/GST payment. The upcoming CRA payment dates for GST in 2024 are as follows:
- April 5, 2024
- July 5, 2024
- October 4, 2024
Should any of these dates fall on a Saturday, Sunday, or federal holiday, the CRA will process the payment on the last working day preceding the fifth. If, after approximately 10 working days surrounding the fifth date mentioned above, you have not received your payment, you can reach out to the CRA at 1-800-387-1193 for assistance.
What government payments will Canadian taxpayers receive in April 2024?
In April 2024, Canadian taxpayers can expect the following government payments:
- GST payments: April 5, 2024
- Canada Carbon Rebate (CCR) (formerly known as Climate Action Incentive Payment): April 15, 2024
- Canada Child Benefit (CCB): April 19, 2024
English version: https://ttnimmigration.ca/vi/en/khoan-hoan-thue-gst-moi-se-duoc-thanh-toan-ngay-5-thang-4/