Private ruling: Supplies for consideration
Date of advice: 6 July 2023
Published: 21 August 2023

Ruling: Q1: Do the works that will be wholly funded by Entity C on the site and owned by Entity A give rise to a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) by Entity C to Entity A? | A1: No.

Relevant facts and circumstances: The entities are registered for goods and services tax (GST). The entities entered into a Deed.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 section 9-15 | A New Tax System (Goods and services Tax) Act 1999 section 9-1 | A New Tax System (Goods and Services Tax) Act 1999 section 9-40 | A New Tax System (Goods and Services Tax) Act 199 9 section 195-1

Reasons for decision: Summary: Section 9-40 of the GST Act provides that you are liable for GST on any taxable supplies that you make. Section 9-5 of the GST Act states that you make a taxable supply if: (a) you make a supply for consideration; (b) the supply is made in the course or furtherance of an enterprise that you carry on; (c) the supply is connected with the indirect tax zone, and (d) you are registered or required to be registered. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. To be a taxable supply, all the requirements of section 9-5 of the GST Act must be satisfied. In this case, it is necessary to firstly determine if the works are a 'supply for consideration' under paragraph 9-5(a) of the GST Act. The Commissioner ruled that a supply was made but the supply was not for consideration. Therefore, there was no taxable supply under section 9-5 of the GST Act.