Private ruling: GST and the margin scheme
Date of advice: 15 October 2020
Published: November 2020

Ruling: Q1: 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? | A1: Yes. | Q2: 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? | A2: 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


Subject: GST and the margin scheme: The Commissioner has ruled on each of the following questions.