Motor Vehicle Industry Partnership - issues register

15.g. Is GST payable on refunds from overseas suppliers where the goods have been rejected by the importer?

Non-interpretative - other references: refer to general principles in GSTR 2003/7 - Goods and services tax: what do the expressions 'directly connected with goods or real property' and 'a supply of work physically performed on goods' mean for the purposes of subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999?

GSTR 2004/7 - Goods and services tax: in the application of items 2 and 3 and paragraph (b) of item 4 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999:

• when is a 'non-resident' or other 'recipient' of a supply 'not in Australia when the thing supplied is done'?
• when is 'an entity that is not an Australian resident' 'outside Australia when the thing supplied is done'?

GSTD 2006/1 - Goods and services tax: is a payment from a non-resident car manufacturer to an Australian distributor under an offshore warranty chargeback arrangement subject to GST?

No. The amount received by the importer is the return of the money paid for inferior goods. The importer being the person to whom the money is refunded is not making a supply therefore no GST is payable.

Sections within Issue 15 - Warranties

• 15.a. How are warranty plans treated for GST purposes?
• 15.b. Withdrawn 29/01/2004
• 15.c. Is a warranty repair carried out by a dealer for a customer a taxable supply?
• 15.d. Is warranty work carried out by a dealer that is invoiced to the manufacturer/importer a taxable supply?
• 15.e. Is a warranty claim made by a manufacturer/importer on an overseas manufacturer a taxable supply?
• 15.f. Is a warranty claim made by a local car manufacturer or distributor on a local component manufacturer a taxable supply?
• 15.g. Is GST payable on refunds from overseas suppliers where the goods have been rejected by the importer?
• 15.h Withdrawn 29 January 2004