Private ruling: GST and grant
Date of advice: 27 October 2015
Published: October 2015

Ruling: Q1: Are you required to remit goods and services tax (GST) in relation to the grant of money you received? | A1: No, you are not required to remit GST in relation to the grant of money you received.

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 applied for a grant to be able to complete a project. You were granted this money for an amount of $X plus a GST component of $X. You were registered for GST during the period in which you received the grant of money, however you de-registered for GST effective from 1 July 2014. You accounted for GST on a cash basis. A copy of the funding agreement has been provided which stipulates the acquittal requirements in relation to these funds.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 9-5

Reasons for decision: Summary: For a supply to be a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), amongst other things, there needs to be a supply made for consideration. You were provided monies of $X. For this money to be consideration for a taxable supply we would need to determine if you made a supply for this money. It is considered that you did not make a supply for this money and as such you are not making a taxable supply. As a result you are not required to remit GST in relation to the monies you received.