Racing and Gambling - Rulings and Determinations

GST Ruling - Summary

GSTR 2002/3 Goods and Services Tax:  prizes.

The Ruling, which is divided into two parts, examines how the GST Act applies to suppliers and recipients of prizes.  Part A of the Ruling explains when giving a prize is a taxable supply and when a prize is consideration for a supply made by the recipient.  It also explains how GST applies where a prize is provided by a sponsor.

Part A explains how to value consideration for taxable supplies in a prizes context where the consideration is not expressed as an amount of money (non-monetary consideration).  In this regard, Part A adopts interpretations expressed in GSTR 2001/6, which is about non-monetary consideration.

Part A also explains how GST payable and input tax credits may be attributed in transactions involving the supply and acquisition of a prize.

Part B of the Ruling explains how Division 126 of the GST Act deals with prizes resulting from gambling.  The explanation includes the GST treatment of points awarded by entities such as casinos and clubs.  Examples are provided that demonstrate the application of the Ruling.

The Ruling does not deal with supplies that are GST-free under subdivision 38-H of the GST Act, which is about raffles and bingo games conducted by a charitable institution.

Issued 2 October 2002.