The GST/HST refundable tax credit is described as a non-taxable sum sent to low- or modest-income people or families to offset all – or a portion – of their GST and HST tax payments, according to the Government of Canada website. Every year, this credit payment is made four times; January 5, 2021, April 1, 2021, July 5, 2021, October 5, 2021 (based on the 2021 schedule). If your GST/HST credit is less than $50 each quarter in July 2020, the Canada Revenue Agency will pay you for the whole payment period on July 3, 2020.
Who is eligible for a GST/HST refund?
If you are qualified for the GST/HST credit and have just turned 19, your first credit payment will be paid in the month following your 19th birthday. If there is a delay in payment on the above-mentioned GST Canada dates for whatever reason, you must wait an extra 10 working days before notifying CRA at 1-800-387-1193.
There are two factors that can affect your tax credit:
- The GST/HST credit is calculated using the base year, which is the tax return year
- The 12-month period during which the GST/HST credits are paid is known as the payment period
When will your credit be recalculated?
- Following each reassessment made by you, your spouse’s, or your common-law partner’s tax return that has an impact on net income
- Following a change in your marital status
- Following a change in the number of eligible children in your household
- following the death of a GST/HST credit recipient
What happens if you were overpaid?
If a recalculation reveals that you were overcharged for the GST/HST credit, Canada Revenue Agency will send you a note informing you of the amount owed. All future GST/HST credit payments or tax refunds will be held until the balance is paid. Your GST/HST credit will also be applied to amounts owed for tax balances or other federal, provincial, or territorial government programs.
What is the maximum amount you can receive via the GST/HST tax credit?
You can receive a credit amount of $592 if you are married or living with a common-law partner, $451 if you are a single individual and an extra $155 for each child under the age of 19 years.
Payments are made on a July-June schedule and are based on your prior year’s earnings. The payment in July 2021 will mark the beginning of a new fiscal year for GST payments, and it will be based on your 2019 tax returns. On April 9, 2020, you get a one-time extra payment that will be double the amount you would have received otherwise.
Many Canadian households benefit from the GST/HST credit, which may give much-needed respite during difficult times. Ascertain that you are receiving the correct amount and that you have filed your taxes in order to get it. I hope this essay has given you a better understanding of the GST/HST credit.