ATO Interpretative Decision
ATO ID 2001/397 (Withdrawn)
Goods and Services Tax
GST and importation of unrefined goldFOI 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, an importer, making a taxable importation under section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it imports unrefined gold?
Decision
Yes, the entity is making a taxable importation under section 13-5 of the GST Act when it imports unrefined gold.
Facts
The entity is an importer. The entity imports unrefined gold into Australia. The unrefined gold has been entered for home consumption within the meaning of the Customs Act 1901. The importation of the unrefined gold is not a non-taxable importation under Part 3-2 of the GST Act.
Reasons for Decision
Under section 13-5 of the GST Act, an entity makes a taxable importation if:
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- it imports goods; and
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- the goods are entered for home consumption within the meaning of the Customs Act.
In this case, the entity is importing the goods for home consumption within the meaning of the Customs Act.
However, an importation is not a taxable importation to the extent that it is a non-taxable importation. Section 13-10 of the GST Act states that an importation is a non-taxable importation if:
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- it is non-taxable under Part 3-2 of the GST Act; or
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- it would have been a supply that was GST-free or input taxed if it had been a supply.
The importation of the unrefined gold is not covered by Part 3-2 of the GST Act. Section 38-385 of the GST Act provides that, when the requirements of the section are met, the first supply of a precious metal after it is refined is GST-free. The gold imported by the entity is unrefined gold and therefore the requirements of section 38-385 of the GST Act would not be met.
The importation by the entity meets the positive limbs of section 13-5 of the GST Act. Furthermore, the importation is neither a non-taxable importation under Part 3-2 of the GST Act nor would it have been GST-free under Division 38 of the GST Act or input taxed under Division 40 of the GST Act had the importation been a supply. Therefore, the entity is making a taxable importation under section 13-5 of the GST Act when it imports unrefined gold.
Date of decision: 22 August 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 13-5
section 13-10
Division 38
section 38-385
Division 40
Part 3-2
The Act
Keywords
Goods and services tax
GST free
GST free precious metals
Imports
Taxable importation
ISSN: 1445-2782
| Date: | Version: | |
| 22 August 2001 | Original statement | |
| You are here | 25 November 2005 | Archived |