A New Tax System (Goods and Services Tax) Act. Australia

A New Tax System (Goods and Services Tax) Act - Australia


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GST-free and input taxed

      (3) To the extent that a supply would, apart from this subsection, be both *GST-free and *input taxed:

      (a) the supply is GST-free and not input taxed, unless the provision under which it is input taxed requires the supplier to have chosen for its supplies of that kind to be input taxed; or

      (b) the supply is input taxed and not GST-free, if that provision requires the supplier to have so chosen.

      Note: Subdivisions 40-E (School tuckshops and canteens) and 40-F (Fund-raising events conducted by charitable institutions etc.) require such a choice.)

      Supply of things used solely in connection with making supplies that are input taxed but not financial supplies

      (4) A supply is taken to be a supply that is *input taxed if it is a supply of anything (other than *new residential premises) that you have used solely in connection with your supplies that are input taxed but are not *financial supplies.

      9-39 Special rules relating to taxable supplies

      Chapter 4 contains special rules relating to taxable supplies, as follows:

      Checklist of special rules

      Item

      For this case…

      See:

      1A

      Agents and insurance brokers

      Division 153

      1

      Associates

      Division 72

      2

      Cancelled lay-by sales

      Division 102

      3

      Company amalgamations

      Division 90

      3A

      Compulsory third party schemes

      Division 79

      4

      Deposits as security

      Division 99

      5

      Gambling

      Division 126

      5A

      GST religious groups

      Division 49

      6

      Insurance

      Division 78

      7

      Offshore supplies other than goods or real property

      Division 84

      8

      Payments of taxes, fees and charges

      Division 81

      8A

      Second-hand goods

      Division 66

      8B

      Settlement sharing arrangements

      Division 80

      9

      Supplies and acquisitions made on a progressive or periodic basis

      Division 156

      9A

      Supplies in return for rights to develop land

      Division 82

      10

      Supplies in satisfaction of debts

      Division 105

      11

      Supplies partly connected with Australia

      Division 96

      12

      Supply under arrangement covered by PAYG voluntary agreement

      Division 113

      12A

      Tax-related transactions

      Division 110

      13

      Telecommunication supplies

      Division 85

      14

      Vouchers

      Division 100

      Subdivision 9-B — Who is liable for GST on taxable supplies?

      9-40 Liability for GST on taxable supplies

      You must pay the GST payable on any *taxable supply that you make.

      9-69 Special rules relating to liability for GST on taxable supplies

      Chapter 4 contains special rules relating to liability for GST on taxable supplies, as follows:

      Checklist of special rules

      Item

      For this case…

      See:

      1

      Company amalgamations

      Division 90

      2

      GST groups

      Division 48

      3

      GST joint ventures

      Division 51

      4

      Offshore supplies other than goods or real property

      Division 84

      4A

      Non-residents making supplies connected with Australia

      Division 83

      4B

      Representatives of incapacitated entities

      Division 58

      5

      Resident agents acting for non-residents

      Division 57

      Subdivision 9-C — How much GST is payable on taxable supplies?

      9-70 The amount of GST on taxable supplies

      The amount of GST on a *taxable supply is 10 % of the *value of the taxable supply.

      9-75 The value of taxable supplies

      (1) The value of a *taxable supply is as follows:

      where:

      price is the sum of:

      (a) so far as the *consideration for the supply is consideration expressed as an amount of *money — the amount (without any discount for the amount of GST (if any) payable on the supply); and

      (b) so far as the consideration is not consideration expressed as an amount of money — the *GST inclusive market value of that consideration.

      Example: You make a taxable supply by selling a car for $22,000 in the course of carrying on an enterprise.

      The value of the supply is:

      The GST on the supply is therefore $2,000 (i.e. 10 % of $20,000).

      (2) However, if the taxable supply is of a *luxury car, the value of the taxable supply is as follows:

      where:


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