| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012901486117
Date of advice: 27 October 2015
Ruling
Subject: GST and grant
Question
Are you required to remit goods and services tax (GST) in relation to the grant of money you received?
Answer
No, you are not required to remit GST in relation to the grant of money you received.
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You applied for a grant to be able to complete a project. You were granted this money for an amount of $X plus a GST component of $X. You were registered for GST during the period in which you received the grant of money, however you de-registered for GST effective from 1 July 2014. You accounted for GST on a cash basis.
A copy of the funding agreement has been provided which stipulates the acquittal requirements in relation to these funds.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 9-5
Reasons for decision
For a supply to be a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), amongst other things, there needs to be a supply made for consideration.
You were provided monies of $X. For this money to be consideration for a taxable supply we would need to determine if you made a supply for this money.
It is considered that you did not make a supply for this money and as such you are not making a taxable supply. As a result you are not required to remit GST in relation to the monies you received.