A GST analysis of a transaction always begins with the identification of deliveries or deliveries made by whom. The GST consequences of a transaction are then usually extracted from this identification. For example, if it is a taxable benefit, there will be a GST liability for delivery and that liability will be accounted for in accordance with the imputation rules used by the supplier. If it is a pre-taxable benefit, there will also be no GST liability, but the provider must consider that benefit in determining its ability to claim upstream tax credits for its expenses. It is therefore essential to correctly identify deliveries delivered. In the case of leases, this task becomes complicated: as this rental-sale system has grown in popularity, another version of this system becomes fashionable. Initially, the lease-sale was a two-party transaction between the owner and the intended tenant or purchaser. Another variation arises when a financier plays a central role between the owner of the merchandise and the tenant. Many sellers do not want to act as financiers themselves by providing loans to tenants. Therefore, a lease-sale transaction is often, on the one hand, a sale in which the seller sells the property to a financial company and, second, a lease agreement in which the financial company leases the property on lease-sale terms to the tenant or the intended purchaser.
Therefore, the tenant does not have a real contractual relationship with the seller. Similarly, the seller is not required to take care of the tenant/buyer of goods to recover the balance of the price; the financier can pay the balance and proceed with the recovery. In this form form, the goods are purchased by the seller by the financier, who then receives a rental contract from the proposed tenant/buyer under which the tenant/buyer becomes the owner of the merchandise with the payment of all the agreed rent payments and makes use of his option to purchase the goods for payment of a nominal price. In the case of Hire Purchase financing, the financing is provided by the financial company. In such cases, the tenant (buyer) becomes the owner of the goods.