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Edited version of your private ruling
Authorisation Number: 1012441710190
Ruling
Subject: GST and postage
Question
Is there a specific provision under the A New Tax System (Goods and Services Tax Transition) Act 1999 (Transition Act) or the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) in regard to stamps issued before 1 July 2000 and used as postage after 1 July 2000?
Decision
No, there is no specific provision under the Transition Act or the GST Act in regard to stamps issued before 1 July 2000 and used as postage after 1 July 2000. The issue and use of stamps as postage from 1 July 2000 is subject to the GST Act where the supplier of the stamps is registered for GST.
Relevant facts and circumstances
· You are an individual and are not registered for the goods and services tax (GST).
· You sent a parcel overseas and as postage you affixed stamps which you purchased before1 July 2000 on the parcel.
· When you handed the parcel to the postal employee, you were advised that as you had not used the specific GST-free international stamps for the postage, the GST value of the stamps would be deducted and you would be charged that amount again as extra postage.
· You are aware that GST is applicable to domestic stamps and GST is not applicable for international stamps for postage made from 1 July 2000. You want to know whether there is a specific provision in regard to stamps issued before 1 July 2000 and used after 1 July 2000 under the Transition Act.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Subsection 7-1(1)
A New Tax System (Goods and Services Tax Transition) Act 1999 Section 6
A New Tax System (Goods and Services Tax Transition) Act 1999 Section 10
Reasons for decision
The purpose of the Transition Act is to make provision for the start of the goods and services tax (GST) and to deal with the transition from the sales tax to GST, as well as other matters relating to the start of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
The transition provisions in the Transition Act are applicable until 2005 and are to be read in conjunction with the goods and services tax (GST) law and the sales tax law.
The Transition Act does not have any specific provision in regard to stamps issued before 1 July 2000 and to be used as postage from that date. The GST Act therefore applies to the issue and/or use of stamps as postage from 1 July 2000 where the supplier is registered for GST.
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