Who is generally responsible for collecting GST in a transaction?

In a real estate transaction, the seller is generally responsible for collecting the Goods and Services Tax (GST). This obligation arises because the seller is the entity providing the goods or services being taxed. The seller must ensure that GST is added to the sale price of the property and that it is subsequently remitted to the tax authorities.

It is also important to note that while the seller collects the GST, it is technically the buyer who actually pays the tax as part of the transaction. The seller's role in this context is to act as the intermediary ensuring that the tax is properly accounted for and submitted, which reflects the structured nature of tax collection in real estate deals.

In certain situations, other parties may be involved in the handling or calculation of GST, such as the buyer's lawyer providing legal guidance on the matter or the government overseeing the taxation framework. However, the primary responsibility for the collection of GST falls on the seller, who must comply with tax laws and regulations in the sale of their property.