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Edited version of your written advice
Authorisation Number: 1012972722597
Date of advice: 23 March 2016
Ruling
Subject: GST and reduced input tax credits
Question
Is Entity A entitled to claim reduced input tax credits (RITCs) under item 29(a) in the table in subregulation 70-5.02(2) of the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations) for its acquisition of the services from Entity B?
Answer
Yes, Entity A is entitled to claim RITCs, but only to the extent that the services are a reduced credit acquisition under item 29(a) in the table in subregulation 70-5.02(2) of the GST Regulations.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 11-5
A New Tax System (Goods and Services Tax) Act 1999 section 11-15
A New Tax System (Goods and Services Tax) Act 1999 section 11-20
A New Tax System (Goods and Services Tax) Act 1999 subsection 70-5(1)
A New Tax System (Goods and Services Tax) Act 1999 Division 189
A New Tax System (Goods and Services Tax) Regulations 1999 subregulation 70-5.02(2)
A New Tax System (Goods and Services Tax) Regulations 1999 subregulation 40-5.09(4A)