A New Tax System (Goods and Services Tax) Act 1999

Chapter 4 - The special rules  

Part 4-1 - Special rules mainly about particular ways entities are organised  

Note:

The special rules in this Part mainly modify the operation of Part 2-2 so far as that Part deals with liability for GST and entitlement to input tax credits, but the special rules also affect other aspects of Part 2-2 and the other Parts of Chapter 2 .

Division 48 - GST groups  

Subdivision 48-D - Ceasing to be a member of a GST group  

48-115   Changes in extent of creditable purpose after you cease to be a member of a GST group  

(1)  


If:


(a) either:


(i) while you were a * member of a * GST group (the first GST group ), you acquired a thing (other than from another member of that group) or imported a thing; or

(ii) you acquired or imported a thing while you were not a member of any GST group, and you subsequently became a member of a GST group (the first GST group ) while you still held the thing; and


(b) you cease to be a member of the first GST group;

then, when applying section 129-40 for the first time after that cessation, the * intended or former application of the thing is the extent of * creditable purpose last used to work out:


(c) the amount of the input tax credit to which you or the * representative member was entitled for the acquisition or importation; or


(d) the amount of any * adjustment you or the representative member had under Division 129 in relation to the thing.

(2)  
If:


(a) while you were a * member of a * GST group (the first GST group ), you acquired a thing (other than from another member of that group) or imported a thing; and


(b) you have ceased to be a member of the first GST group; and


(c) you have an * adjustment under Division 129 in relation to the thing, or the * representative member of another GST group of which you are a * member has that adjustment;

then, for the purposes of working out the full input tax credit in section 129-70 or 129-75 , you are taken not to have been a member of a GST group when you acquired or imported the thing.




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