Applying a Tax Refund to the Payment of Tax Owing
You may wish to use a GST or QST refund or rebate (such as a refund of an amount of tax paid in error or a rebate for public service bodies) for a given period to offset the net GST or QST payable for the same period. To do so, you must complete the appropriate application and file it along with your GST or QST return.
If you file a single return for both the GST and the QST, you can use a QST refund to offset GST payable, and vice versa. In this case, you would remit the difference to us, or claim it as a refund, as applicable. However, we do not generally allow registrants to offset GST payable using a QST refund if they have:
- other debts to the federal or Québec government (even if a tax debt agreement has been reached); or
- failed to file a return for a previous reporting period.
You collected $1,200 in GST and $2,400 in QST. You are entitled to an input tax credit (ITC) of $1,750 and an input tax refund (ITR) of $150.
| GST collected | $1,200 | |
|---|---|---|
| ITC | − | $1,750 |
| Refund of net GST | ($550) | |
| QST collected | $2,400 | |
| ITR | − | $150 |
| Net QST payable | $2,250 | |
| Net QST to be remitted | $2,250 | |
| Refund of net GST | − | $550 |
| Amount of remittance | $1,700 | |