What does ‘net of GST’ mean?

i am doing an accounting assignment and need a little help.

The part of the question i need help with is:

"The cost of the inventory sold was $4200 (net of GST)"

Does this mean that the GST is already included in the $4200?

3 Answers

  • It means that the $4200 did not include GST.

    Including GST in the cost of inventory sold would be misleading and would overstate the cost by 10% as the GST is recoverable from the government.

  • Net Of Gst

  • No, I would read that as meaning that the GST is not included in the $4200.

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