M Studios (Ontario) had retail sales of $288,528.55, including GST, for the last quarter. In the same period M Studios purchased $250,000 worth of supplies and paid the GST on these goods and services. What GST must be remitted by M Studios for the last quarter? (Assume 8% PST and 5% GST)

To calculate the GST that M Studios must remit for the last quarter, we need to find the difference between the GST collected on retail sales and the GST paid on purchases. Let's break it down step by step.

### Step 1: Calculate the GST collected on retail sales
The total retail sales, including GST, are given as $288,528.55. Since the GST rate is 5%, the total sales can be expressed as:

\[
\text{Total Sales} = \text{Retail Sales Without GST} + \text{GST Collected}
\]

Let $ x $ represent the retail sales without GST. The equation is:

\[
x + 0.05x = 288,528.55
\]

\[
1.05x = 288,528.55
\]

Solving for $ x $ (the sales amount before GST):

\[
x = \frac{288,528.55}{1.05} = 274,789.10
\]

Thus, the retail sales without GST are $274,789.10.

Now, calculate the GST collected:

\[
\text{GST Collected} = 0.05 \times 274,789.10 = 13,739.45
\]

### Step 2: Calculate the GST paid on purchases
The purchases of supplies are given as $250,000. Assuming M Studios paid GST on these purchases, we calculate the GST paid:

\[
\text{GST Paid} = 0.05 \times 250,000 = 12,500
\]

### Step 3: Calculate the net GST to be remitted
The GST to be remitted is the GST collected minus the GST paid:

\[
\text{GST Remitted} = 13,739.45 - 12,500 = 1,239.45
\]

Thus, M Studios must remit **$1,239.45** in GST for the last quarter.

---

Would you like further details or have any questions?

Here are five related questions:
1. What is the difference between GST and PST?
2. How would the calculation change if the GST rate were different?
3. How does input tax credit impact GST remittance for businesses?
4. How do different provinces in Canada vary in their tax structures?
5. What happens if the purchases exceed sales in terms of GST remittance?

**Tip:** Always separate your business's GST paid on purchases (input tax) and GST collected on sales to simplify your remittance calculation.

Learn how to calculate the GST that must be remitted by M Studios in Ontario for the last quarter based on retail sales of $288,528.55, including GST, and $250,000 worth of supplies purchased. The detailed solution covers GST collection, payment, and remittance.

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