Private ruling: GST and exemption from paying GST
Date of advice: 17 December 2014
Published: December 2014

Ruling: Q1: Can you be exempted from paying GST on the supplies that you make through one of your businesses? | A1: No.

Relevant facts and circumstances: You are carrying a number of separate businesses. One of the enterprises is a small part-time business with a turnover of around $X. As part of this business you provide certain types of health services (health services). You have some qualifications but are not a recognised professional in relation to the supply of these services. You are not a member of an association that has uniform national registration requirements relating to the supply of services of that kind. A Medicare benefit is not payable for your supplies of health services. Our records show that you are registered for GST.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 9-5.

Reasons for decision: Summary: Under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), you are liable to pay GST on all the taxable supplies that you make. Section 9-5 of the GST Act provides that you make a taxable supply if: (a) you make the 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 Australia, and (d) you are registered, or required to be registered for GST. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. In your case, your supplies of health services meet the requirements of paragraphs 9-5(a) to 9-5(d) of the GST Act. This is because the supplies are for consideration, the supplies are in the course of your business, the supplies are connected with Australia and you are registered for GST. Further your supplies of health services are not input taxed or GST-free supplies under any provision of the GST Act or a provision of another Act. Therefore, you are liable to pay GST on your supplies of health services. Once an entity is registered or required to be registered for GST, it is liable to pay GST on any taxable supplies that it makes through all the enterprises that it operates in that capacity, regardless of the size or turnover of each individual enterprise. Please note that there are no provisions in the GST Act which allow us to grant you an exemption from paying GST on the health services that you supply.