If you sell goods or services in Australia, “ex GST” and “inc GST” show up everywhere - on price lists, quotes, invoices and contracts.
But what does ex GST actually mean for your business, and when should you use it?
Getting this right matters. Clear GST wording helps you avoid disputes, keeps you compliant with consumer law, and makes it easier for customers to understand what they’ll pay.
In this guide, we’ll break down ex GST meaning in plain English, walk through when to show prices ex or inc GST, and share practical tips for quotes, invoices and contracts - all from an Australian small business perspective.
What Does “Ex GST” Mean (And How Is It Different To “Inc GST”)?
“Ex GST” means excluding GST. It’s the price before the 10% Goods and Services Tax is added. If a service is $100 ex GST, the total price payable (if GST applies) is $110 inc GST.
“Inc GST” means including GST. It’s the final amount payable by the customer, with the 10% already included.
Quick Definitions You Can Use
- Ex GST meaning: the price does not include the 10% GST (you add it on top if GST applies).
- Inc GST meaning: the price includes the 10% GST (it’s the total the customer pays).
- Excluding GST abbreviation: “ex GST” or sometimes “exc GST”.
- Including GST abbreviation: “inc GST” or sometimes “incl GST”.
Why the distinction? Many B2B businesses quote ex GST because their clients are GST-registered and can claim input tax credits. In contrast, many consumer-facing businesses prefer inc GST pricing so customers see the final, GST-inclusive price upfront.
When Should You Show Prices Excluding GST vs Including GST?
There isn’t a one-size-fits-all rule, but there are strong best practices based on your audience and where the price appears.
Retail And Consumer-Facing Pricing
If you sell to consumers (B2C), the safer approach is to display inc GST prices wherever possible, especially in advertisements, shelf tickets and online listings. Customers should not have to calculate tax on top of what they see.
The Australian Consumer Law (ACL) prohibits misleading pricing. Your pricing display should be consistent with advertised price laws and avoid confusion about the real amount payable. If you choose to show both ex and inc GST, make the inc GST total prominent and easy to find.
Business-To-Business (B2B) Pricing
In B2B contexts, it’s common to quote ex GST, provided you clearly state that GST is payable on top (where applicable) and show the final inc GST amount before payment is due. Many business customers are GST-registered and expect ex GST pricing in quotes and rate cards.
The key is clarity. Make it obvious whether GST is included or excluded and avoid any ambiguity that could be considered misleading under section 29 of the ACL.
Online Stores And Price Lists
If you run an online store, a good practice is to show the inc GST price on product pages and at checkout. If you also display ex GST (e.g. for wholesale customers), label each price clearly and ensure the inc GST total is prominent at the point of purchase. Your website’s sales process should be backed by clear E-Commerce Terms & Conditions that explain pricing, taxes and how totals are calculated.
Industry Conventions And Customer Expectations
Some industries (like construction and professional services) often present fee proposals ex GST. Others (like hospitality or retail) lean toward inc GST. Either approach can be fine if your customers won’t be misled, and your documents clearly explain what’s included and what isn’t.
How To Explain GST On Quotes, Invoices And Contracts
Clear language in your paperwork keeps everyone on the same page. Here’s how to handle GST in your everyday documents.
Quotes And Proposals
Quotes are often the first place a customer sees your price in writing. To avoid disputes, use plain wording that states whether your price is ex GST or inc GST, and show the total payable.
- Label each line item as ex GST or inc GST.
- State whether GST is payable (e.g. “All amounts are exclusive of GST. Where applicable, GST will be added at 10%”).
- Show a tax breakdown and grand total (ex GST, GST amount, total inc GST).
Remember that a quote can sometimes be treated as an offer. It’s worth understanding when a quotation is legally binding and using clear quote terms and conditions so you control how and when a quote can be accepted, varied or withdrawn.
Invoices
For tax invoices, it’s best practice to show a simple tax breakdown:
- Total ex GST
- GST amount
- Total inc GST
Also include any required invoice details (supplier ABN, invoice date, description of goods/services, and for invoices over $1,000, the buyer’s identity or ABN). If your customer issues the invoice to you (common in some industries), you may be using Recipient Created Tax Invoices, which require specific wording and a written agreement.
Beyond GST, make sure your invoice clearly sets out your invoice payment terms (due dates, payment methods, interest or admin fees where lawful, and what happens if payment is late). Clarity here will reduce payment disputes and support your cash flow.
Customer Contracts And Terms
Your contracts should say whether prices are ex or inc GST and who is responsible for any taxes or duties. Many businesses include a pricing clause that:
- States whether amounts are exclusive or inclusive of GST.
- Explains how GST will be calculated and added to the price.
- Specifies documentation requirements (e.g. providing a valid tax invoice) before payment falls due.
These terms often sit in your Master Services Agreement, proposal T&Cs or your Terms of Trade, and help ensure your GST position is clear across every sale.
GST Registration And Thresholds For Small Businesses
You must register for GST if your GST turnover is $75,000 or more (or $150,000 or more for non-profits). Some businesses register voluntarily below the threshold, especially if they sell B2B and want to claim input tax credits.
If You’re Registered For GST
You’ll charge 10% GST on most taxable sales, issue compliant tax invoices, lodge Business Activity Statements (BAS), and remit GST to the ATO (net of credits). Using “ex GST” on your price list can be fine if your customers understand GST will be added and you present the total inc GST before payment.
If You’re Not Registered For GST
You shouldn’t charge GST. If you display “inc GST” pricing but you’re not registered, you risk misleading customers and causing accounting issues. If you work with larger clients, they may expect a valid tax invoice - so consider whether early registration makes sense for your market and operations.
Different Tax Treatments
Some supplies are GST-free (e.g. certain health services) or input-taxed (e.g. financial services and residential rent). If you deal in these categories, state your pricing clearly and get advice on how to describe GST treatment in your documents. Even then, clarity around ex vs inc GST can avoid confusion where part of a scope is taxable and another part is not.
Common Mistakes To Avoid With GST Wording (And How To Fix Them)
Small mistakes in wording can cause big headaches. Here are pitfalls we see often - and how to prevent them.
1) Using Ex GST In Ads Without Showing The Total
Advertising “$100 ex GST” to the public (without the inc GST total) can be risky. It may be confusing for consumers and raise compliance questions under the ACL. If you sell to the public, make the inc GST price the hero and avoid fine print that hides the real total.
2) Inconsistent Pricing Across Documents
If your website shows inc GST but your quote shows ex GST, customers can feel misled. Align how you display prices in all places and make sure your contract brings it together in a single, clear clause that prevails if there’s a conflict.
3) Not Stating GST Status At All
Silence creates disputes. If you don’t say whether a price is ex or inc GST, expect arguments later. Add a clear line in your quotes, invoices and T&Cs that says how GST is handled.
4) Missing The GST Breakdown On Invoices
Customers (especially B2B) often need a proper tax breakdown to claim input tax credits. Include ex GST, GST, and inc GST totals on every tax invoice and ensure ABNs and descriptions are complete. If your counterpart issues the invoice (RCI), make sure you have the required agreement in place and the invoice includes the mandated RCTI wording.
5) Confusing “Service Fees” And Surcharges
If you add booking, processing or credit card fees, specify whether they include GST and ensure the shopper sees the total payable (including GST on those fees) before checkout. Poor disclosure can be considered misleading pricing conduct, so sense-check this against your obligations under advertised pricing requirements and the ACL.
6) Not Updating Templates When You Register (Or Deregister) For GST
Business changes happen. If you move above the threshold and register, update your templates immediately. The same goes if you deregister. Keep your website, quotes, invoices and contracts aligned with your current GST status.
Practical Examples: Ex GST vs Inc GST In Everyday Scenarios
Sometimes an example makes it easier to apply. Here are short, real-world scenarios.
Example 1: Service Business Quoting B2B
You run an IT services company that primarily invoices other companies. Your rate card shows “$150/hour ex GST”. Your proposals say “All amounts are exclusive of GST. GST will be added where applicable.” Your quotes show a subtotal, the GST amount, and a total inc GST, and your contract pricing clause mirrors the ex GST position. This is clear and consistent.
Example 2: Retail Shopfront
You sell homewares to the public. Your price tags and website show inc GST totals. You don’t show ex GST prices in-store because your customers expect to see the final price. Your checkout receipts break out GST so customers have a record if they need it for business purposes.
Example 3: Mixed Audience Wholesale + Retail
You supply skincare to wholesalers and sell direct to consumers online. Your wholesale price list is clearly marked “ex GST” and all wholesale invoices show ex GST, GST and inc GST totals. Your public website shows inc GST prices by default. Your online checkout also calculates the right total for any shipping or add-ons, with tax clearly broken out in the order summary.
How To Bake GST Clarity Into Your Systems
It’s easier to stay consistent if your systems do the heavy lifting.
- Update accounting software templates (quotes, invoices, receipts) to show ex GST, GST, and inc GST totals.
- Lock in standard wording for proposals and scopes - “All amounts are exclusive of GST, unless stated otherwise.”
- Use a master clause in your customer terms to define how taxes are applied and who is responsible.
- Add a pricing explanation on your website FAQs so customers know whether your prices include GST.
- Train staff to use the same language when discussing price with customers.
If you also want to manage cash flow and reduce disputes, pair your pricing clarity with strong Terms of Trade that cover payment timing, late fees where lawful, and what happens if a client disputes an invoice.
Compliance Tips: Consumer Law, Invoicing And Transparency
Two principles will keep you out of trouble: don’t mislead customers, and be transparent about the total price payable.
- Make the total inc GST obvious before a customer commits to buy.
- Don’t hide GST in fine print if your audience is likely to expect inc GST pricing.
- Ensure your advertising and website pricing align with your obligations under advertised pricing and the ACL (particularly misleading conduct and false or misleading representations).
- Use proper tax invoices with clear GST breakdowns when you’re registered for GST.
If you’re unsure whether a pricing display could be misleading, sense-check the layout and wording against your obligations under advertised price laws and your risk under section 29 of the ACL. When in doubt, it’s safest to present the GST-inclusive total prominently and early.
Key Legal Documents To Support Clear Pricing And GST Compliance
Strong documents make your pricing and GST treatment crystal clear. Consider having these in place (tailored to your business):
- Terms of Trade: Sets out pricing (ex or inc GST), payment terms, invoicing requirements, late fees where lawful, and tax responsibilities.
- Business Terms or Master Services Agreement: A standard set of terms you can attach to proposals and scopes so your pricing and GST clause is consistent every time.
- Quotes/Proposals With Clear T&Cs: Ensure your quotes specify ex vs inc GST, show a tax breakdown and link back to your standard terms, noting when a quote becomes binding.
- Invoices And RCTI Agreements: Align your invoice template with tax invoice rules and include any required wording if you use Recipient Created Tax Invoices.
- Website Terms & Conditions (for online sales): Set expectations on pricing, taxes, checkout totals and corrections in case of pricing errors.
- Payment And Collections Terms: Complement your invoices with clear invoice payment terms so customers know when and how to pay.
These documents don’t just help with GST clarity - they protect your cash flow, reduce scope creep, and give you a consistent foundation to scale.
FAQs: Short Answers To Common GST Wording Questions
Is “ex GST” the same as “exc GST”?
Yes - “ex GST” and “exc GST” are commonly used to mean the same thing: prices excluding GST.
Do I have to show both ex and inc GST?
No. Show whatever is clearest for your audience and compliant for the context. For consumer audiences, making the inc GST amount prominent is safest. In B2B settings, ex GST can be fine, provided the inc GST total is shown before payment.
What if part of my scope is GST-free?
Split out your pricing and describe GST treatment line-by-line. Your invoice should show which items attract GST, which are GST-free, and the totals for each.
Can a quote be binding if it says ex GST?
It can be, depending on how it’s worded and accepted. Understand when a quotation is legally binding and use clear quote terms and conditions to control acceptance and validity.
Key Takeaways
- “Ex GST” means the price excludes GST; “inc GST” means the price includes GST - be explicit about which one you’re using.
- For consumer-facing pricing, show inc GST totals prominently to avoid misleading customers and to align with advertised pricing obligations.
- In B2B contexts, ex GST is common - just make sure your quotes, invoices and contracts also show the total inc GST before payment.
- Keep your documents consistent: state GST treatment in quotes, break it out on invoices, and lock terms into your Terms of Trade or Business Terms.
- Avoid common pitfalls like inconsistent displays, missing GST breakdowns, and using ex GST in retail ads without the inc GST total.
- If you’re unsure whether your pricing display could be misleading, sense-check it against advertised pricing rules and the ACL, or get tailored advice.
If you’d like a consultation on pricing and GST wording in your contracts, quotes and invoices, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
