Fact sheet

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Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit

July 2001

Goods and Services Tax/
Harmonized Sales Tax (GST/HST) Credit

Who can apply for the GST/HST credit?

Individuals can apply for the GST/HST credit if, at the end of the year, they were residents of Canada and they:

• were 19 years of age or older;
• had a spouse; or
• were a parent.

If an individual has a spouse, only one of them can apply for the credit. No matter which person applies, the credit will be the same.

Individuals confined to a prison or similar institution are not eligible for the credit. Persons that did not have to pay tax in Canada because they were an officer or servant of another country, such as a diplomat, or a family member or an employee of that diplomat, also cannot apply. In addition, individuals cannot claim a credit for a spouse or child who met either of these two conditions at the end of the year.

How to apply for the GST/HST credit

To apply for or to continue receiving the GST/HST credit, individuals have to file their income tax returns each year, and check the "Yes" box in the area called "Goods and services tax/Harmonized sales tax (GST/HST) credit" on page 1 of the return. Since the credit is based on net family income, they should be sure to enter their spouse's net income. They also have to enter the number of qualified children for whom they are claiming this credit and, in the identification area of the return, indicate their marital status. If they are married or living common law, they should also provide their spouse's social insurance number.

The Canada Customs and Revenue Agency (CCRA) needs this information each year to determine eligibility, and to calculate the GST/HST credit correctly. The CCRA does not include the GST/HST credit with income tax refunds. Instead, in July, once the previous year's return is assessed, the CCRA will send a notice of determination to let people know the amount, if any, to which they are entitled and how the amount was calculated. The notice will include the first GST/HST credit payment if a person is entitled to receive it. If a direct deposit request was made, the notice will confirm the amount deposited.

How do individuals find out if they are eligible?

The CCRA automated tax information telephone service called T.I.P.S. - GST/HST credit gives information on eligibility for the GST/HST credit and dates people can expect to receive their payments. The CCRA issues GST/HST credit payments four times a year. Starting in July 2001, the payments will be issued on the 5 th day of each quarter (July 5 and October 5). The T.I.P.S. telephone number is 1-800-267-6999. This service is also available on the Internet through T.I.P.S. Online at: www.cra.gc.ca/tips

To get GST/HST credit information using T.I.P.S. or T.I.P.S. Online, individuals have to provide their social insurance number, month and year of birth, and the total income they reported on line 150 of their tax return. People who call before May 1 will have to provide the amount they entered on line 150 of the tax return they filed the previous year. If they call after April 30, they will have to provide the amount from line 150 of their current-year tax return.

What if a person doesn't get a GST/HST credit payment?

People may not have received a GST/HST credit payment because:

• they moved and did not give the CCRA a new address (this applies to direct deposit also);
• they did not file an income tax return;
• they did not complete the GST/HST credit application on their income tax return;
• they ticked "No" in error on the GST/HST credit application; or
• they are not eligible because of age, residency, or other factors.

The CCRA sends a notice of determination explaining why they did not receive a payment if one of the following situations occurs:

• their income is too high;
• they owed money to one or more government institutions and their GST/HST credit was used to offset these debts;
• both spouses made a claim (only one spouse can receive the credit for the whole family); or
• their payment was withheld under the Family Orders and Agreements Enforcement Assistance Act.

Related provincial programs

The CCRA administers the Newfoundland Harmonized Sales Tax Credit, the Newfoundland Seniors' Benefit, and the Saskatchewan Sales Tax Credit on behalf of the provinces. There is no need to apply separately to qualify under these programs. You (or your spouse) should apply for the GST/HST credit on your (or your spouse's) tax return. The CCRA will automatically determine if you are (or your spouse is) qualified and will calculate the entitlement. Payments for the Newfoundland Harmonized Sales Tax Credit and the Newfoundland Senior's Benefit are combined with the October payment of the federal GST/HST credit. Payments for the Saskatchewan Sales Tax Credit are combined with the GST/HST credit and are issued quarterly.

More information

More information is available from any tax services office. Addresses and telephone numbers are listed in the government section of telephone books. Information on the GST/HST credit can also be found on "the Child and Family Benefits" page of the CCRA's Web site at: www.cra.gc.ca/cctb-gstc

Date modified:

2001-07-04