A major benefit of the GST/HST credit is that it is available to low-to-moderate-income Canadian families. The eligible individuals and their families receive a base benefit in this program. As income levels increase, the base benefit decreases.This article aims to describe the eligibility criteria for the GST/HST credit payment, how to apply, and other relevant information.Payments are generally made on the fifth day of the month following the due date. Nevertheless, you should consider direct deposit to ensure the collection is made without interruption. You must contact the CRA at least ten working days after you miss a payment in such a case.There may be differences in the dates for those who receive payments by check. As a result, the time and day of delivery depend on the mail service of the area.

What is GST/HST Credit?

An abbreviation for GST or HST is "goods and services tax" or "harmonized sales tax." The Canadian government introduced GST/HST compensation in 1991. Under this scheme, taxpayers with low or modest incomes are entitled to receive quarterly tax-free payments from the government. About 12 million Canadians benefit from it at present.There is a possibility that the GST payment may include sums from various programs as well as the GST payment, depending on where you live. If a homeowner makes qualified energy-efficient improvements to their home, the Canadian Greener Homes Grant program can provide financial assistance of up to $5,600.

Do You Qualify for the GST/HST Credit?

You must be a Canadian resident and meet either of the following requirements in order to qualify for the GST/HST credit:

  • 19 years of age or older
  • Parents who live or have lived with their children
  • who have or have had a spouse or common-law partner.
  • In addition, the net family income is taken into consideration. Income limits are established in advance.

You must be a tax filer with a social security number. It is still necessary to file a tax return even if you have no income. You will, however, still be eligible for the GST/HST credit even if you do not have a SIN. In the application, you must indicate why you do not have one and provide proof of your identity. A passport, immigration document, driver's license, etc., can be used as identification.You will not be eligible if, at the beginning of the payment month, you are:

  • 90 consecutive days or more in prison or other correctional institutions
  • The families and employees of foreign officers and servants who do not pay taxes in Canada
  • are considered non-residents of Canada.

How much GST/HST Credit can you get?

The following benefits are available for the period Jul'2022 - Jun'2023.

  • $456 for a single person
  • And $598 for a couple
  • 157 dollars for every child under 19

Actual credit amounts are determined by the individual or family's net income and the number of children below 19.Even though GST/HST payment periods do not follow a calendar year, they are calculated in accordance with the previous year's income or the base year. In this regard, it is essential to file taxes and receive a GST/HST credit.

Final Thoughts

If you are eligible for the GST/HST Credit, you can apply for it and take advantage of its benefits. Our accounting firm ensures that you get the benefits of as many tax credits as possible to minimize your taxes. Contact us if you want to prepare and file your taxes.