Time limit on entitlement to credits
The four year time limit to claim GST, LCT, WET or fuel tax credits was put in place to encourage you to lodge your return on time. These time limits continue to apply. The relevant divisions in the GST Act and Fuel Tax Act are amended to reflect that for tax periods and fuel tax return periods commencing on or after 1 July 2012 an assessment is made.
Your entitlement to a credit ceases if it is not taken into account in an assessment during a four year period. The four year time limit to claim a GST or fuel tax credit ends four years from the due date of the return for the earliest tax period or fuel tax return period in which you would have been able to claim the credit -setting aside any requirement to hold a tax invoice. The credit can still be attributed to a later tax period as long as it is within the four years set out above.
If you are neither registered nor required to be registered for GST, and you have not previously claimed a particular fuel tax credit entitlement, you must claim the fuel tax credit within four years from the day you acquired the fuel.
Your entitlement to a GST credit is restricted if the GST payable on the supply has ceased to be payable by the supplier. GST ceases to be payable by the supplier when the period of review ends and the relevant assessment does not include the GST payable on that supply.
Parts of the divisions that refer to four year entitlements under the TAA will only continue to apply to tax periods and fuel tax return periods commencing before 1 July 2012.
Example 9: GST credits not taken into account in assessment within four years
On 5 August 2013 Julien makes a number of acquisitions. As Julien believes the supply (to which the acquisitions relate) will be input taxed, she does not claim any GST credits in the activity statement for the tax period ending 31 August 2013, which is lodged on 21 September 2013. The assessment does not take into account the GST credits.
Julien makes the supply in March 2017 and treats the supply as input taxed in her activity statement for the tax period ending 31 March 2017, which is lodged on 21 April 2017. The assessment for that period does not include any GST payable on that supply.
In April 2018 we amend Julien's assessment for the tax period ending 31 March 2017 to reflect that the supply is actually taxable. We may therefore require GST to be paid on the supply. However, because more than four years have passed since the return for the tax period for which the GST credit (which would have been attributable) was due, Julien will not be entitled to claim the GST credits that would have been claimable, even though the acquisitions should have been treated as creditable acquisitions.
Example 10: GST credits taken into account in assessment within four years
On 15 September 2013 Bronlynn makes a number of acquisitions that relate to making a supply that is partly taxable and partly input taxed. Bronlynn chooses an apportionment methodology that treats the supply as 50 per cent taxable and 50 per cent input taxed and claims half the GST credits for acquisitions related to the supply. Both the supply and the credits are taken into account in her activity statement for the tax period ending 30 September 2013 lodged on 21 October 2013. Bronlynn also makes an unrelated creditable acquisition in the same tax period, but forgets to include the GST credit entitlement on her activity statement for the tax period ending 30 September 2013.
On 23 March 2015, following an audit of Bronlynn's tax affairs, we amend her assessment for the tax period ending 30 September 2013 to reflect that the supply was 60 per cent taxable and 40 per cent input taxed, and increase the amount of GST payable on the supply. As a result of the change in the extent of creditable purpose, Bronlynn's GST credit entitlements for the related acquisitions are also increased.
This gives rise to two amended particulars, each having their own refreshed periods of review that commence on the day we issue Bronlynn with a notice of amended assessment.
On 25 November 2017, Bronlynn provides additional information to us which shows that the supply was actually 40% taxable and 60% input taxed. As the refreshed periods of review for both the GST payable and the GST credits for the related acquisitions are not yet over, we may amend Bronlynn's assessment to reduce both the GST payable and the GST credits claimable. This is because the credits have been taken into account in an assessment where the GST credit is first attributable.
However, Bronlynn may no longer claim the GST credit for the unrelated creditable acquisition because this credit was not taken into account in the assessment where the GST credit is first attributable.
If Bronlynn attributes and therefore takes into account the GST credits in another tax period within the four years, as long as we amend within the period of review or an approved extension, we may amend the GST credits.
Sections within Other changes relating to indirect taxes
Last Modified: Monday, 10 December 2012