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View Full Version : Advice Needed: GST registered and insurance


hardcoredummy
Dec 10th, 2006, 03:01 PM
Ok, here's the situation. We own a building, with the bottom being a store, and the upper stories living apartments that we actually live in. We had a kitchen fire, so insurance will be taking care of that. But they said since we're GST registered with the store, we need to pay GST for the repairs as well.

The repairs is for the building, NOT the store. The store was not affected except for some water damage. But 95% of all that they're doing, is in the apartment. Now, should i need to pay the GST on that? To be fair, i haven't spoken with them on this yet... i simply agreed to it because we are GST registered with the store. I just realized yesterday that perhaps we shouldn't even be footing the GST. I'm going to give them a call tomorrow and get some clarification on this, but i was wondering if anybody can give some advice.

engo
Dec 10th, 2006, 04:45 PM
Just explain this to your insurance company and they should pay for the GST that you will not (or cannot) claim as ITC. A lot of insurance companies would pay for GST in these circumstances. Good luck.

hardcoredummy
Dec 10th, 2006, 05:56 PM
Thanks for the tip. I do plan on speaking with them, and our broker if i have to. This is all on behalf of my parents actually, since they don't speak English very well... so i'm not all up to the business side of this.