Common use of Gross up of consideration Clause in Contracts

Gross up of consideration. Where any supply to be made by one party (Supplier) to another party (Recipient) under or in accordance with this Agreement is subject to GST (other than a supply the consideration for which is specifically described in this Agreement as 'GST inclusive'): (a) the consideration payable or to be provided for that supply but for the application of this clause (GST Exclusive Consideration) shall be increased by, and the Recipient shall pay to the Supplier, an amount equal to the GST payable by the Supplier in respect of that supply (GST Amount); and (b) the Recipient must pay the GST Amount to the Supplier, without set-off, deduction or requirement for demand, at the earlier of: (i) the time that the GST Exclusive Consideration is payable or to be provided; and (ii) the time that the Supplier has to pay the GST in respect of that supply.