ATO ID 2004/478: GST and registration of a cycle rickshaw operator
Date of decision: 7 April 2004
Business line: Indirect Tax

Issue
Is the entity, a business operator, required to be registered for goods and services tax (GST) in accordance with the compulsory registration requirements in subsection 144-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when it transports passengers, for a fare, by way of a cycle rickshaw?

Decision
No, the entity is not required to be registered for GST in accordance with the compulsory registration requirements in subsection 144-5(1) of the GST Act when it transports passengers, for a fare, by way of a cycle rickshaw.

Facts
The entity is a business operator. The entity transports passengers by way of a cycle rickshaw and charges its passengers a fare. The cycle rickshaw is a tricycle that is pedal-driven by the entity. Passengers are able to either pre-book the cycle rickshaw or hail its use as they walk along the street. The entity's current GST turnover and projected GST turnover are below the registration turnover threshold as set out in section 23-15 of the GST Act.

Reasons for decision
Summary: Subsection 144-5(1) of the GST Act provides that an entity is required to be registered for GST if, in carrying on its enterprise, the entity supplies taxi travel. The term 'taxi travel' is defined in section 195-1 of the GST Act to mean travel that involves transporting passengers, by taxi or limousine, for fares. The terms 'taxi' and 'limousine' are not defined in the GST Act and therefore it is appropriate to consider their ordinary meaning. The Macquarie Dictionary , 1997, 3rd edn, The Macquarie Library Pty Ltd, New South Wales, defines 'taxi' as, 'a motor car for public hire, especially one fitted with a taximeter' and the term 'limousine' as 'any large luxurious car.' The cycle rickshaw supplied by the entity is a pedal-driven tricycle and as such, does not fall within the definition of either a taxi or limousine. Although the entity charges a fare for its supply of transport by way of cycle rickshaw, the cycle rickshaw is neither a taxi nor a limousine for the purposes of the GST Act. As such, the supply of transport by way of cycle rickshaw is not the supply of 'taxi travel' as defined in section 195-1 of the GST Act. Therefore, the entity is not required to be registered for GST in accordance with the compulsory registration requirements in subsection 144-5(1) of the GST Act when it transports passengers, for a fare, by way of a cycle rickshaw.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 23-15 subsection 144-5(1) section 195-1
Other references: The Macquarie Dictionary, 1997, 3rd edn, The Macquarie Library Pty Ltd, New South Wales
Subject references: Goods and services tax GST special rules Registration of taxis