Unfortunately this is true.  Yes you have paid the GST on the goods, Yes are registered for GST and are entitled to claim a GST credit, but unfortunately you can not claim all the GST you have paid. 

The most common example of this is when you are buying an expensive motor vehicle. Specifically above the depreciation cost limit.  For the 2024 financial year the depreciation cost limit is $68,108.  Which means the most GST you are eligible to claim is $6,191.

So when you buy that dream BMW or Mercedes for $150,000.  Even if you pay almost $15,000 in GST, you can only claim $6,191 in GST credits on your next BAS.

Please note when you sell your motor vehicle, that is owned by your business and you are GST registered, the proceeds of sale are deemed to include GST.  You will need to remit 1/11th of the sale price as GST on your next business activity statement.