Contract mistakes can be costly, and administering them often needs an understanding of both what is trying to be achieved and the legal aspects. It is important, as part of the overall contract, to have an understanding of the Goods and Services Tax (GST) issues that may arise as a result of the transaction.

Under the GST Act, the supplier incurs the liability to pay GST but the supplier has no statutory right to pass on that GST liability to the purchaser – this needs to be done as part of the contractual relationship. How this contractual relationship is recorded is critical and many of the commercial disputes involve a contest about the terms of the contractual relationship.