If you are looking to understand the basics of GST, then you have come to the right place. This post entails a complete guide regarding the GST/HST credit program in Canada.
The GST/HST credit serves as a core advantage for low-to-moderate-income families in Canada. Under this, a base benefit is paid to the eligible individuals and families. The base payment is decreased in proportion to the increase in income level.
This article outlines the criteria of eligibility for the GST/HST credit payment, its application procedure, and other related information.
GST/HST Payment Dates 2022
|GST/HST Payment Dates
|July 5th, 2024
|October 5th, 2024
|January 6th, 2025
|April 5th, 2025
The GST/HST payment is made every quarter. The dates for 2022 are as below:
Usually, the credit is paid on the fifth day of the payment month. Nonetheless, you can enroll in direct deposit to ensure the duly collection without disruptions. If you miss a payment in such a case, you must wait for at least 10 working days before contacting CRA.
However, the dates for those who receive payments by cheque may differ. This is because it depends on the mail service of an area for the delivery time and day.
What is GST/HST Credit?
GST/HST is an abbreviation for "goods and services tax" or "harmonized sales tax." Under this scheme, quarterly tax-free payments are made by the government to families with low to modest incomes. It is a compensation for GST/HST that was introduced in 1991. Currently, it benefits around 12 million Canadians.
Depending on where you live, the GST payment may include sums from various programs as well as the GST payment. For example, the Canadian Greener Homes Grant program provides up to $5,600 in financial assistance if a homeowner makes qualified energy-efficient improvements to their home.
GST Credit Eligibility: Do You Qualify?
To be eligible for GST/HST credit, you must be a resident of Canada and either one of the following:
- Aged 19 or above
- A parent that lives or lived with a child
- Have or had a spouse or common-law partner
Moreover, family net income is also considered. The income limits are defined ahead.
You must be a tax filer with a social insurance number. Even in the case of no income, you must file a tax return to be eligible. However, the absence of SIN does not mean you will not be eligible for the GST/HST credit. You must explain the reason for not having one in the application with proof of your identity. This can either be a passport, immigration document, driver’s license, etc.
However, you will be ineligible if, at the beginning of the payment month, you are:
- Confined to prison or other correctional institutions for 90 consecutive days or more
- Foreign officers or servants who don’t pay taxes in Canada and their families or employees
- a non-resident of Canada for income tax purposes.
How much can you receive as GST/HST Credit?
For the period Jul’2022 – Jun’2023, you can receive:
- $456 if you are single
- $598 if you have a common-law partner
- $157 for every child below 19 years living with you
The actual credit amounts are based on the individual or family net come, and the number of children below 19 living with you.
Even though the payment period of GST/HST is not a calendar period, it is calculated based on the previous year’s income, aka base year. This is why filing taxes is essential and a requirement for GST/HST credit.
Maximum Income for GST/HST Credit
Since GST/HST credit is meant for families with low to medium income levels, there is a cap on income levels beyond which one becomes ineligible for the credit.
For convenience, the following table demonstrates the limits:
|# of Children
How GST/HST Credit Payment is calculated?
GST/HST payment has 3 components:
- Base credit of $299
- An additional credit of up to $157 for individuals with a family net income above $9,686
- Credit reduction of 5% after the net income exceeds $38,892
Therefore, you can expect your credit to decrease once your income exceeds $38,892. Moreover, you will be completely clawed back if you are single with no kids and your income level exceeds $48,012.
You can use the CRA GST/HST credit calculation sheets to calculate the amount you are eligible to receive. The Child and Family benefits calculator offers a much better summary, including Canada Child Benefits.
How to Apply for GST/HST Credit
Usually, the Canada Revenue Agency (CRA) automatically signs up eligible individuals. Nonetheless, you may have to apply if you are either a newcomer to Canada, or have a child not enrolled for CCB.
Newcomers to Canada GST/HST Application
Newcomers can apply for GST/HST credit by mailing one of the following forms to the CRA tax office:
- Form RC151 – GST/HST credit application for residents of Canada with no children
- Form RC66 – Canada Child Benefits Application for residents with children
GST/HST Credit for a New Child
A new child, or one who has just moved in with you, can also get a tax credit. There are two ways you can do that: You can file a CCB application or add the child to your household through "CRA My Account."