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Edited version of private advice
Authorisation Number: 1051842351321
Date of advice: 21 May 2021
Ruling
Subject: GST and supply of consultancy services
Question
Is GST payable on your supply of consultancy services to the customer which relate to obtaining approval under certain legislation for the construction of a reticulated sewerage system at a location outside the indirect tax zone?
Answer
No.
This is because your supply of the service is GST-free and also because it is not connected with the indirect tax zone.
Your supply of the service is GST-free as it is a supply of a service that is directly connected with real property situated outside the indirect tax zone. This is because this supply affects (or its purpose is to affect) the nature of particular real property located outside the indirect tax zone.
The type of service you are supplying is similar to the services specified in the second line of examples in paragraph 42 of Goods and Services Tax Ruling GSTR 2003/7 - that is,' town planning consultancy services in relation to rezoning, subdividing or planning permission for a particular site'. Paragraph 42 of GSTR 2003/7 states that the services specified in that paragraph are examples of services directly connected with real property.
The supply of your service is not connected with the indirect tax zone because:
• you will perform the service outside the indirect tax zone; and
• your will not supply the service through an enterprise that you carry on in the indirect tax zone; and
• your customer is not an 'Australian consumer'.
Your customer is not an 'Australian consumer' as it is registered for GST and it would be acquiring the services for the purposes of an enterprise that it carries on.
Relevant facts and circumstances
You are registered for GST.
You are based outside the indirect tax zone.
You are a planner.
You are supplying environmental planning consultancy services to your customer, who is located in the indirect tax zone. The consultancy services relate to obtaining approval under certain legislation for the construction of a reticulated sewerage system at a location outside the indirect tax zone. Your customer is registered for GST.
You are performing the consultancy services in question outside the indirect tax zone.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5
A New Tax System (Goods and Services Tax) Act 1999 section 9-25
A New Tax System (Goods and Services Tax) Act 1999 section 38-190
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