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Ruling
Subject: GST registration
Question 1
Are you required to register separately as an entity under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
No. You are not required to register separately, but may choose to do so.
Relevant facts and circumstances
You are a statutory agency of a government department.
You are registered for GST.
The department is also registered for GST.
You will charge for certain activities that clients specifically request such as:
· registration and re-registration
· accreditation and re-accreditation
· major variations to registration and/or accreditation
· publications and workshops.
Reasons for decision
You are not required to register separately for GST, but may choose to do so. You have already chosen to register.
Detailed reasoning
Section 184-1 of the GST Act defines entity for the purposes of the GST Act as follows:
(1) Entity means any of the following:
(a) an individual;
(b) a body corporate;
(c) a corporation sole;
(d) a body politic;
(e) a partnership;
(f) any other unincorporated association or body of persons; a
(g) a trust;
(h) a superannuation fund.
You are considered to be a Statutory Agency, as established by your enabling legislation. This does not fit within any of the terms specified in the above definition. Therefore under the normal meaning of entity you are not required to register.
However, there are special rules about registration for government entities at Division 149 of the GST Act.
Section 195-1 of the GST Act defines government entity as:
government entity has the meaning given by section 41 of the A New Tax System (Australian Business Number) Act 1999.
Section 41 of the ABN Act defines government entity as:
(a) a Department of the State of the Commonwealth; or
(b) a Department of the Parliament; or
(c) an Executive Agency, or Statutory Agency, within the meaning of the Public Service Act1999; or
(d) a Department of State or Territory; or
(e) an organisation that:
(i) is not an entity; and
(ii) is either established by the Commonwealth, a State or a Territory (whether under a law or not) to carry on an enterprise or established for a public purpose by an Australian law; and
(iii) can be separately identified by reference to the nature or the location of the
organisation;
whether or not the organisation is part of a Department or branch described in paragraph (a), (b), (c) or (d) or of another organisation of the kind described in this paragraph.
You are covered by the definition under subsection 41 (e) of the ABN Act and are therefore a government entity under section 195-1 of the GST Act. Accordingly, you are entitled to have an ABN.
Division 149 of the GST Act notes that a government entity may be registered for GST under section 23-10 of the GST Act even if it is not an entity in the normal sense. However, section 149-10 provides that a government entity is not required to be registered even if it is carrying on an enterprise and its annual turnover meets the annual turnover threshold.
Accordingly, you may choose whether to register for GST or not. However, as you have already chosen to register for GST you will be liable for GST on the taxable supplies that you make while registered and will be entitled to input tax credits for any creditable acquisitions that you make while registered.
You will charge for activities that a higher education provider specifically requests. As you have noted in your application this means that there is a service provided, and this will be a taxable supply.
If you had chosen not to register for GST, the government department that you belong to would be liable for GST and entitled to claim input tax credits for supplies and acquisitions that you make. This situation will also apply should you choose to cancel your registration.
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