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  • 1.1.4 Consequences of registration or non-registration and members' possible entitlement to input tax credits

    For source of ATO view, refer to the principles in:

    • GSTR 2006/4 Goods and services tax: determining the extent of creditable purpose for claiming input tax credits and for making adjustments for changes in extent of creditable purpose
    • GSTR 2006/9 Goods and services tax: supplies and
    • GSTR 2013/1 Goods and services tax: tax invoices.

    A registered body corporate will be required to include GST in any taxable supplies it makes, and pay the GST to the ATO. This includes amounts levied on proprietors, including sinking fund levies.

    Provided a body corporate acquires goods and services for a creditable purpose and holds a tax invoice for acquisitions over $82.50 (GST inclusive), it will be entitled to claim an input tax credit for the GST included in the cost of goods and services acquired. For example, input tax credits may be claimed for the GST included in acquisitions of electricity, management, cleaning, and repair and maintenance services. The credits will reduce the amount of GST that needs to be paid to the ATO on the business activity statement (BAS).

    If the body corporate is not registered, or required to be registered, it cannot claim input tax credits, does not charge GST, does not issue tax invoices and is not required to lodge a BAS.

    Generally, no input tax credits would be claimed on GST in the price of the levies imposed upon the members, as the members would not be likely to be the recipient of a creditable acquisition in relation to these payments. However, the members may be entitled to an input tax credit if they are registered and their unit in the body corporate was utilised for their enterprise. For instance, if there were business premises in a commercial complex.

      Last modified: 05 Aug 2016QC 16473