GST Calculation on a sale of a shop lot:
1. When John bought the shop unit at $1 million, he paid GST of $90,000 (i.e. 9% of GST input tax).
2. Later when he re-sold it at $1.1 million, he charged GST of $99,000 (i.e. 9% of GST output tax).
The GST payable by John to IRAS is worked out as follows:
Output tax minus Input Tax = $99,000 - $90,000 = $9,000 GST payable by John to IRAS.
