ATO Interpretative Decision
ATO ID 2001/288 (Withdrawn)
Goods and Services Tax
GST and input tax creditsFOI status: may be released
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This ATO ID is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Is the entity, a supplier of goods and services that is not registered for goods and services tax (GST), entitled to claim an input tax credit under section 11-20 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it purchases goods?
Decision
No, the entity is not entitled to claim an input tax credit under section 11-20 of the GST Act when it purchases goods.
Facts
The entity is a supplier of goods and services. The entity is not registered nor required to be registered for GST. The entity purchases goods. The entity uses the goods for both business and private use. The supply of the goods to the entity is a taxable supply under section 9-5 of the GST Act.
Reasons for Decision
An entity is entitled to an input tax credit under section 11-20 of the GST Act when it makes a creditable acquisition.
Section 11-5 of the GST Act sets out the requirements that must be satisfied for an acquisition to be a creditable acquisition. An entity makes a creditable acquisition if:
- (a)
- it acquires anything solely or partly for a creditable purpose; and
- (b)
- the supply to it is a taxable supply; and
- (c)
- it provides, or is liable to provide, consideration for the supply, and
- (d)
- it is registered or required to be registered.
From the facts, the entity meets the requirements in paragraphs (a), (b) and (c). However, in this case, the entity is neither registered nor required to be registered for GST. As such, the entity does not meet all the requirements of section 11-5 of the GST Act and the purchase of goods is not a creditable acquisition. Therefore, the entity is not entitled to an input tax credit under section 11-20 of the GST Act.
Date of decision: 17 July 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
section 11-5
section 11-20
Keywords
Goods & services tax
GST registration
GST supplies & acquisitions
Creditable acquisition
ISSN: 1445-2782
| Date: | Version: | |
| 17 July 2001 | Original statement | |
| You are here | 2 September 2005 | Archived |