GST/QST treatment on income and expenses
Whether GST/QST is included in your income and expense totals depends on your registration status:
If you are registered for GST/QST
Do not include GST/QST in your expense amounts. Since you claim input tax credits (ITCs) and input tax refunds (ITRs) when remitting the GST/QST you collected, the tax portion must be excluded from the expenses reported on your income tax return.
If you are not registered for GST/QST
Include the GST/QST paid in your expense totals, as you are not eligible to recover these taxes.