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Edited version of your written advice
Authorisation Number: 1051375159619
Date of advice: 18 May 2018
Ruling
Subject: GST-free supplies treated as taxable, but GST not passed on.
Question 1
Are the administrative and other services provided by you GST-free?
Answer
Yes
Question 2
Can you claim back the excess GST paid for your services?
Answer
Yes, but only for the previous four years (see reasoning below).
Relevant facts and circumstances
You provide administrative and other services in relation to family day care centres and those supplies are covered by GSTD 2001/1 and are GST-free. You did not charge GST on your services but reported them as taxable supplies.
Relevant legislative provisions
A new Tax System (Goods and Services Tax) Act 1999 sub section 38-140
A new Tax System (Goods and Services Tax) Act 1999 sub section 38-145
A new Tax System (Goods and Services Tax) Act 1999 sub section 38-150
A new Tax System (Goods and Services Tax) Act 1999 sub section 142-10
Taxation Administration Act 1953 section 155-40
Reasons for decision
You made supplies which are GST-free under GSTD 2001/1, but because of a reporting error treated those supplies as taxable. You did not pass on the excess GST. Consequently sub section 142-10 does not apply to prevent a refund of the excess GST.
Please note that there is a four year time limit in relation to amending activity statements. The four year time limit is referred to as the period of review (POR) and ends 4 years and 1 day from the date the original activity statement was lodged (section 155-40 of Schedule 1 to the Taxation Administration Act 1953). This means you can only revise activity statements that are still within the 4 year time limits.