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Edited version of private advice
Authorisation Number: 1051732960972
Date of advice: 15 October 2020
Ruling
Subject: GST and the margin scheme
The Commissioner has ruled on each of the following questions.
Question 1
Can Entity A choose to apply the margin scheme under section 75-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to its supply of real property to Entity B?
Answer
Yes.
Question 2
Is Entity B eligible to apply the margin scheme under section 75-5 of the GST Act on its subsequent supply of the real property to Entity X?
Answer
Yes.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 division 9
A New Tax System (Goods and Services Tax) Act 1999 division 75
A New Tax System (Goods and Services Tax) Act 1999 section 75-5
A New Tax System (Goods and Services Tax) Act 1999 subsection 75-5(1)
A New Tax System (Goods and Services Tax) Act 1999 subsection 75-5(1A)
A New Tax System (Goods and Services Tax) Act 1999 subsection 75-5(2)
A New Tax System (Goods and Services Tax) Act 1999 paragraph 75-5(3)(a)
A New Tax System (Goods and Services Tax) Act 1999 section 75-10
A New Tax System (Goods and Services Tax) Act 1999 section 75-20