Private ruling: GST grouping
Date of advice: 30 November 2020
Published: January 2021

Ruling: Q1: Does Company A satisfy the membership requirements set out in section 48-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to be added to the GST Group A? | A1: Yes, Company A satisfies the membership requirements set out in section 48-10 of the GST Act to be added to the GST Group A.

Relevant facts and circumstances: GST Group Representative of GST Group A wants to add Company A to its GST Group which consists of four other group members. Each group member accounts for GST on a non-cash (accruals) basis and reporting in monthly tax periods. Company A is registered for GST, accounts for GST on accruals basis and reporting in monthly tax periods. Company A is not a member of any GST group nor does it have any branch registered. Company A and GST Group Representative are of the same 90% owned group of companies.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 48-10 | A New Tax System (Goods and Services Tax) Act 1999 section 48-15 | A New Tax System (Goods and Services Tax) Act 1999 section 190-5

Reasons for decision: Summary: All legislative references in this ruling are to the GST Act unless otherwise stated. Under Division 48, entities with common ownership that meet certain conditions are eligible to form a GST group. In relation to the membership requirements, subsection 48-10(1) states: (1) An entity satisfies the membership requirements of a *GST group, or a proposed GST group, if the entity: (a) is: (i) a *company; or (ii) a *partnership, trust or individual that satisfies the requirements specified in the regulations; and (b) is, if the entity is a company, a company of the same *90% owned group as all the other members of the GST group or proposed GST group that are also companies; and (c) is *registered; and (d) has the same tax periods applying to it as the tax periods applying to all the other members of the GST group or proposed GST group; and (e) accounts on the same basis as all the other members of the GST group or proposed GST group; and (f) is not a member of any other GST group; and (g) does not have any branch that is registered under Division 54. * An asterisk denotes a defined term in section 195-1 In this case, Company A and GST Group Representative satisfy the requirements listed under paragraphs 48-10(1)(c) to (g). Both Company A and GST Group Representative are of the same 90% owned group of companies. As both Company A and GST Group Representative satisfy all the requirements set out under section 48-10, Company A is eligible to be added to the GST Group A.