Coles is my must go supermarket, as I have a Fly Buy for collecting points, I go to Coles nearly twice a week, more often than before.
There are many Coles brand products sold in Coles, like the Carrefore stuff in Carrefore, they are usually cheaper then the other brands. Coles stuff includes sources, juice, Milk, egg, another brand called Coles smart buyer is even cheaper. For price reason, I usually buy those two brands for my daily necessities. For example, orange juice, the Coles brand is $3.25, Coles smart buy is $2.75, all the other brands are over $3.5. But there is always a question, why Coles stuff is so cheap?
Before I think it’s the marketing reason, cheap outsourcing manufacturing, no advertising cost, fixed customers, there are pretty simple reasons, but it is all?
Today as usual, I go to Coles again, and I only buy 2 bottles of orange juices and 2 bottles of milk. I won’t buy more as they are very heavy. When I got the receipt, surprisingly I found I didn’t pay the GST.
I thought maybe Coles accounting system is wrong, however when I found out my old receipts, I found that I never paid GST for all Coles band stuff, why? I googled it but didn’t find the answer, but I simply understand it like this:
GST only happens during resales, usually when Coles sells all the other brands. Once Coles sells Coles brand stuff, as the manufacture, it doesn’t need to pay tax so it won’t charge its customers.
It maybe right and maybe wrong, I need to ask my lecturer of Taxation Law next year, anyway, if so, without 10% GST, Coles stuff is actually not that cheap, though I have to buy them.