Private ruling: GST and consignment sales
Date of advice: 27 June 2022
Published: October 2022
Ruling period: From 1 April 20XX

Ruling: Q1: Are your consignment sales a taxable supply of the goods by you? | A1: No. | Q2: If the answer to Question 1 is no, are you making a taxable supply of agency services to the supplier of the goods, when you sell the goods on consignment? | A2: When you are registered or required to be registered for GST, you will not be liable to pay GST on a sale of consignment goods you make in your capacity as an agent of the consignors. However, you are liable for the GST on the commission you receive from the consignors.

Relevant facts and circumstances: You were registered for GST from XXX to XXX and from XXX to XXX, you are not currently registered for GST. You sell goods on consignment instore and online You have agreements with the consignors which states the amount of commission you earn on the consignment sales Your agreement with the consignors state you are not responsible for stolen, damaged or faulty stock to the consignor

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 9-10 | A New Tax System (Goods and Services Tax) Act 1999 Section 9-15 | A New Tax System (Goods and Services Tax) Act 1999 Section 23-5