Private ruling: GST registration
Date of advice: 5 February 2020
Published: March 2020
Ruling period: Not applicable
Date scheme commenced: Not applicable

Ruling: Q1: Are you liable to account for goods and services tax (GST) for your supplies from the effective date of your registration for GST? | A1: Yes .

Relevant facts and circumstances: · You carry on a financial broker business. · You applied for GST registration online in XXXX. However, due to an error occurring during the registration process, Australian Tax Office confirmed your GST registration on YY XX XXXX. · The effective date of your GST registration was XXXX. · Your licensee has issued recipient created tax invoices (RCTI) to you for the supplies. · You noticed that the RCTIs were issued without including the GST and you notified your licensee. They advised you that since you were not registered for GST, they have not included the GST in the price. · You have claimed GST for your expenses in relation to your business.

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 9-40

Reasons for decision: Summary: You are liable to pay goods and services tax (GST) on any taxable supply that you make as per section 9-40 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). Section 9-5 of the GST Act provides that you make a taxable supply if: · you make the supply for consideration; and · the supply is made in the course or furtherance of an enterprise that you carry on; and · the supply is connected with the indirect tax zone; and · 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. You provided services to your licensee for consideration; in the course or furtherance of your enterprise that you carry on; the supply of services is connected with indirect tax zone (Australia). Based on the information provided the supply of services to your licensee is neither GST-free nor input taxed. It should be determined whether you were registered or required to be registered for GST at the time of making your supplies of services to the licensee. You applied for GST registration online in XXXX and due to certain error occurred during the registration process, the GST registration was not completed until XXXX. After the registration process was completed, the ATO notified you in XXXX that the GST registration takes effect from XXXX. Therefore, the supplies you have made since XXXX will satisfy all of the requirements of section 9-5 of the GST Act and you are liable to pay GST on those supplies. You are also entitled to claim input tax credits for your creditable acquisition since XXXX. | Detailed Reasoning - Additional information:: Recipient Created Tax Invoices Goods and Services Tax Ruling GSTR 2000/10: recipient created tax invoices, explains the Classes of Recipient Created Tax Invoice Determination (No.1) 2000. One of the requirements of issuing RCTI is that the supplier and the recipient must be registered for GST when the invoice is issued. (Refer para 13(a) of GSTR 2000/10). Paragraph 40 of the GSTR 2000/10 explains that a supplier or recipient who is not registered but is required to be registered does not satisfy the requirements for issuing RCTIs. Correcting GST errors If you have made a mistake (that fits the definition of a GST error) when reporting GST on an activity statement, you can correct that error on a later activity statement if you meet certain conditions. The benefit of correcting a GST error on a later activity statement is that you will not be liable for any penalties or general interest charge (GIC) for that error. For more information on 'Correcting GST errors', please refer to: https://www.ato.gov.au/Business/GST/In-detail/Managing-GST-in-your-business/Reporting,-paying-and-activity-statements/Correcting-GST-errors/