Goods and Services Tax Advice
GSTA TPP 062W
Goods and services tax: Can a large capital purchase resulting in a net refund of GST in the annual return be ignored for the purposes of the Division 162 instalment option?
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Notice of Withdrawal
Goods and Services Tax Advice GSTA TPP 062 is withdrawn with effect from today.
1. GSTA TPP 062 states that a large capital purchase cannot be ignored when determining whether or not an entity was in a net refund position and therefore unable to continue to pay GST by instalments.
2. Division 162 of the A New Tax System (Goods and Services Tax Act) 1999 (GST Act) previously included a rule providing that an election to pay GST by instalments ceased to have effect if during the first tax period applying to you in a financial year, you are in a net refund position.[1]
3. In 2013, the Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013 amended Division 162 of the GST Act to remove this rule.
4. Under the new law, GST instalment payers continue to be eligible to elect to pay GST by instalments if they move into a net refund position. The amendments apply in relation to GST instalment quarters starting on or after 1 July 2013.
5. As a result of the changes to Division 162 of the GST Act, the advice provided in GSTA TPP 062 no longer has any application in relation to GST instalment quarters starting on or after 1 July 2013. GST TPP 062 can therefore be withdrawn.
Commissioner of Taxation
4 June 2014
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You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
Not previously issued as a draft
References
ATO references:
NO 1-5G3POKY
Date: | Version: | Change: | |
14 June 2005 | Original ruling | ||
31 October 2012 | Consolidated ruling | Addendum | |
You are here | 4 June 2014 | Withdrawn |