Edited version of private advice

Authorisation Number: 1051885658669

Date of advice: 13 August 2021

Ruling

Subject: GST and reporting liability

Question

Are you liable to remit the GST collected on the recipient created tax invoices from Entity X in respect of the GST you have collected on the recipient created tax invoice?

Answer

Yes

Relevant facts and circumstances

You carry on an enterprise and are registered for GST.

You were issued a letter by the Commissioner of Taxation (Commissioner) confirming that as a registered charity you are endorsed to access the following tax concessions:

•         Income tax exemption under Subdivision 50-B of the Income Tax Assessment Act 1997;

•         GST concession under Division 176 of the GST Act;

•         FBT rebate under section 123E of the Fringe Benefits Tax Assessment Act 1986.

You have received funding (a grant) from Entity X. A copy of the agreement between you and Entity X has been provided as part of this ruling request and sets out the things that you must do in order to be entitled to the funding.

You have received Recipient Created Tax Invoices (RCTI) from Entity X showing the relevant payments made to you under the Agreement.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Section 9-40

Reasons for decision

Section 9-40 of the GST Act provides that you are liable for GST on any taxable supply you make.

Division 176 of the GST Act sets out the requirements under which the Commissioner may endorse an entity as a charity.

Notwithstanding that you have been endorsed as a charity under Division 176 of the GST Act you are still liable for GST where yet meet the requirements and make a taxable supply.

In this case as you have made a taxable supply and collected the relevant GST amount you are required to remit the GST liability.