Edited version of your private ruling

Authorisation Number: 1011986537883

This edited version of your ruling will be published in the public register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.

Ruling

Subject: goods and services tax (GST) and importation of a metal commodity

Question

Is GST payable on your importation of the a metal commodity ?

Answer

No.

This ruling applies for the following periods:

The scheme commences on:

Relevant facts and circumstances

You purchased a metal commodity .

You imported the a metal commodity into Australia.

You have entered the a metal commodity for home consumption (within the meaning of the Customs Act 1901).

The a metal commodity is in the form of bars.

The a metal commodity carries the required markings describing purity and weight and silver content.

The values of the a metal commodity are determined by reference to the spot prices of the metal it contains - silver.

The a metal commodity is 99.9 % pure.

You are not a dealer in precious metals.

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) Act 1999 paragraph 9-30(3)(a)

A New Tax System (Goods and Services Tax) Act 1999 subsection 13-5(1)

A New Tax System (Goods and Services Tax) Act 1999 paragraph 13-10(b)

A New Tax System (Goods and Services Tax) Act 1999 section 13-15

A New Tax System (Goods and Services Tax) Act 1999 section 38-385

A New Tax System (Goods and Services Tax) Act 1999 section 40-100

Reasons for decision

Summary

GST is not payable on your importation of the a metal commodity , as it is an importation of precious metal.

Detailed reasoning

In accordance with subsection 7-1(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), GST is payable on taxable importations.

In accordance with section 13-15 of the GST Act, you must pay GST payable on any taxable importation that you make.

You make a taxable importation where you satisfy the requirements of subsection

13-5(1) of the GST Act, which states:

You make a taxable importation if:

(a) goods are imported; and

(b) you enter the goods for home consumption (within the meaning of

the Customs Act 1901).

However, the importation is not a taxable importation to the extent that it

is a *non-taxable importation.

(* Denotes a term that is defined in section 195-1 of the GST Act)

In your case, goods were imported, that is, a metal commodity . Hence, the requirement of paragraph 13-5(1)(a) of the GST Act was satisfied.

You entered these goods for home consumption within the meaning of the Customs Act 1901. Hence, you satisfied the requirement of paragraph 13-5(1)(b) of the GST Act.

However, the importation will not be a taxable importation to the extent that it is a non-taxable importation.

In accordance with paragraph 13-10(b) of the GST Act, an importation is a non-taxable importation if it would have been a supply that was GST-free or input taxed if it had been a supply.

We shall now determine whether your importation of the a metal commodity would have been a GST-free or input taxed supply if it had been a supply.

In accordance with section 38-385 of the GST Act, a supply of precious metal is GST-free it the requirements of that provision are satisfied. Section 38-385 of the GST Act states:

A supply of *precious metal is GST-free if:

(a) it is the first supply of that precious metal after its refining by, or on

behalf of, the supplier; and

(b) the entity that refined the precious metal is a *refiner of precious metal;

and

(c) the *recipient of the supply is a *dealer in precious metal.

Section 40-100 of the GST Act states that a supply of precious metal is input taxed.

In accordance with paragraph 9-30(3)(a) of the GST Act, a supply that would otherwise be GST-free and input taxed is generally GST-free.

Section 195-1 of the GST Act defines precious metals. The definition includes silver (in an investment form) of at least 99.9% fineness.

Paragraph 29 of Goods and Services Tax Ruling GSTR 2003/10 summaries what is silver in investment form. It states:

To summarise the above, for gold, silver or platinum to be in investment form for the purposes of the GST Act, it must be in a form that:

· is capable of being traded on the international bullion market, that is, it be must be a bar, wafer or coin;

· bears a mark of characteristic accepted as identifying and guaranteeing its fineness and quality; and

· is usually traded at a price that is determined by reference to the spot price of the metal it contains.

In your case, you imported a metal commodity .

The a metal commodity is in the form of bars.

The a metal commodity bears marks or characteristics accepted as identifying and guaranteeing its fineness and quality.

The a metal commodity is traded at a price that is determined by reference to the spot price of the metal it contains - silver.

Hence, the a metal commodity is silver in investment form. Additionally, the a metal commodity has at least 99.9% fineness. Hence, the a metal commodity is precious metal for the purposes of the GST Act.

If your importation of the a metal commodity had instead been a supply, this supply would not have been the first supply of precious metal after its refining by or on behalf of the refiner. Additionally, you are not a dealer in precious metals. Hence, the requirements of paragraphs 38-385(a) and 38-385(c) of the GST Act would not have been satisfied if the importation had instead been a supply. Consequently, if your importation of the a metal commodity had instead been a supply, it would not have been a GST-free supply under section 38-385 of the GST Act, as it would not have satisfied all of the requirements of that provision.

If your importation of the a metal commodity had instead been a supply, this supply would have been a supply of precious metal, and therefore, input taxed under section 40-100 of the GST Act. Hence, in accordance with paragraph 13-10(b) of the GST Act, your importation of the a metal commodity is a non-taxable importation. Consequently, your importation of the a metal commodity is not a taxable importation, and therefore, GST is not payable by you on this importation.