Private ruling: GST - cancellation of registration
Date of advice: 17 April 2023
Published: 5 June 2023

Ruling: Q1: Will the Commissioner cancel your goods and services tax (GST) registration effective from next year when you lodge your cancellation application? | A1: Yes, the Commissioner will cancel your GST registration effective from next year when you lodge your cancellation application provided your actual annual GST turnover remained below the GST registration turnover threshold.

Relevant facts and circumstances: You re-registered for GST to report on non-cash basis of accounting for GST with annual tax periods. You claimed the GST credits in relation to the exterior painting and maintenance works (project) you contracted to be carried out on your building. The project commenced and concluded in the same year. The agreement you entered into allowed payment for the project to be made in four Instalments over a period of four years. The final payment was made last year. In order to pay for the project, your levy collection was increased over the four-year period. Your activity statement lodged for the last four years since you re-registered for GST showed that your total turnover was below the registration turnover threshold. Your Annual General Meeting Minutes held last year showed that your projected levy collection will also be below the threshold.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 25-55