Private ruling: GST registration
Date of advice: 22 September 2016
Published: November 2016

Ruling: Q1: Are you required to be registered for GST under section 23-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No. Section 23-5 of the GST Act provides that an entity is required to be registered for GST if: • the entity is carrying on an enterprise, and • its GST turnover meets the registration turnover threshold of $75,000 ($150,000 for non-profit bodies) Under section 188-10 of the GST Act an entity's GST turnover meets the registration turnover threshold if: • the entity's current GST turnover is $75,000 or more and the Commissioner is not satisfied that the entity's projected GST turnover is below $75,000, or • the entity's projected GST turnover is $75,000 or more. You are not required to be registered for GST under section 23-5 of the GST Act. This is because although your current GST turnover is at or above $75,000, the Commissioner is satisfied that your projected GST turnover is below $75,000. Hence, your GST turnover does not meet the registration turnover threshold.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You operate a service business. You have a number of clients and you provide your services to their customers. Since you started providing your services your GST turnover has been less than $75,000. In a recent month your current GST turnover exceeded $75,000. The increase in your current GST turnover was due to the increase in the number of services you provided. Currently, your projected GST turnover is less than $75,000. You do not envisage your projected GST turnover to reach $75,000 because you will be losing a large number of customers resulting from the sale of the business of some of your clients. Furthermore, this may be your last or second last year of operation for the specified reason.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 23-5. | A New Tax System (Goods and Services Tax) Act 1999 section 188-5. | A New Tax System (Goods and Services Tax) Act 1999 section 188-10. | A New Tax System (Goods and Services Tax) Act 1999 section 188-15. | A New Tax System (Goods and Services Tax) Act 1999 section 188-20. | A New Tax System (Goods and Services Tax) Act 1999 section 188-25.