The GST/HST payment is a non-taxable deposit intended to offset the goods and services tax and harmonized sales tax (GST/HST) that low- and moderate-income individuals and families in Canada pay four times a year. GST payments for the previous tax year are available to all Canadian residents for income tax purposes, including foreign students and those with work permits.
Canada GST Payment: Overview
The majority of goods and services sold in Canada for domestic use are subject to the value-added tax known as the goods and services tax, or GST. GST is administered at the federal level by the Canada Revenue Agency (CRA), and it is currently imposed on a variety of transactions, such as imports, rentals, and food purchases. The current rate of GST is 5%.
The goal of this tax is to be all-inclusive, including nearly all phases of production and distribution. The input tax credit technique is one of the main pillars of GST. By using this method, companies can claim a credit for the GST they paid on purchases and other costs related to their business activities.
By balancing the GST paid on inputs against the GST collected on outputs, businesses can increase tax equity and efficiency while lowering the tax’s impact on their bottom line. In a similar vein, Canadian citizens who transact with businesses have a set amount of GST reimbursed to them on a quarterly basis.
Canada GST Payment: Eligibility Requirements
You are eligible for this payment if:
- you are deemed a Canadian resident for income tax purposes at the start of the month where the CRA makes a payment.
- You have to be at least 19 years old in that month in order for the CRA to make you a quarterly payment.
- In the same period, you must fulfill at least one of the following requirements if you are under 19:
- You are married or you were previously in a common-law relationship.
- As a parent, you either live with your child now or in the past.
Apply For GST Payment
You have to file a tax return in 2023 even if you are not earning any income in order to get the GST/HST credit and any provincial or territorial credits that apply.
To claim the GST/HST credit, if you are a newcomer to Canada (a foreign student, holder of a work permit, or a permanent citizen), you can follow one of the following two steps:
If you are not a parent: To file your taxes for the year you turn a resident of Canada, submit Form RC151, Application for GST/HST Credit as well as Climate Action Incentive Payment for Those Who Become Residents of Canada, filled out.
If you’re a parent: Fill out Form RC66, Canada Child Benefits Application, and mail it to the CRA tax center to apply for all child and family benefits.
To obtain your citizenship and residency details as well as your Statement of Income, you must also fill out Form RC66SCH, Status in Canada and Income Information for the Canada Child Benefits Application.
Upcoming GST Payment Dates
In 2024, the following dates will see the Canada Revenue Agency (CRA) make quarterly GST/HST payments:
- July 5, 2024
- October 4, 2024
The date of the next GST payment is July 5, 2024. Depending on their annual income, eligible individuals can get up to $496, couples can receive up to $650, and families with children can receive an additional $171.
