Bill C-78 was tabled in the House of Commons on 27 November 2024 to provide a temporary “GST Holiday” to consumers by deeming certain items to be zero-rated for GST purposes from 14 December 2024 to 15 February 2025 (i.e. no GST collectible).
These items include children’s clothing, footwear, diapers and car seats; select children’s toys, jigsaw puzzles and video games/devices, printed newspapers and books, Christmas and similar decorative trees, and various foods and drinks provided at establishments such as restaurants. Zero-rated supplies means that there will be no GST collectible but the supplier can still claim ITCs on expenses incurred to provide the commercial supplies.
CRA also notes that to qualify to be zero rated, the goods must be both paid for and delivered or made available to the buyer during the specified time period. As of 5 December 2024, the bill is in Third Reading in the Senate and expected to pass.
