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ATO Interpretative Decision

ATO ID 2001/368

Goods and Services Tax

GST and registration when an entity is not carrying on an enterprise
FOI status: may be released

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  • This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Can the entity, an individual, register for goods and services tax (GST) under section 23-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it is not carrying on, and does not intend to carry on, an enterprise?

Decision

No, the entity cannot register for GST under section 23-10 of the GST Act when it is not carrying on, and does not intend to carry on, an enterprise.

Facts

The entity is an individual. The entity is not carrying on, and does not intend to carry on, an enterprise.

Reasons for Decision

Under section 23-10 of the GST Act an entity may be registered for GST if:

•
the entity is carrying on an enterprise (whether or not the entity's turnover is at, above or below the registration turnover threshold); or
•
the entity intends to carry on an enterprise from a particular date.

In this case, the entity is not carrying on an enterprise nor does it intend to carry on an enterprise. Therefore, the entity cannot register for GST under section 23-10 of the GST Act.

[Note: If an entity intends to carry on an enterprise from a particular date, it can be registered for GST under subsection 23-10(2) of the GST Act].

Date of decision:  16 August 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 23-10
   subsection 23-10(2)

Keywords
Goods & services tax
GST registration

Business Line:  GST

Date of publication:  29 September 2001

ISSN: 1445-2782

history
  Date: Version:
You are here 16 August 2001 Original statement
  2 September 2005 Archived

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