Private ruling: Revocation of election to pay GST by instalments
Published: March 2013

Ruling: Q1: Are you able to revoke your election to pay GST by instalments for the 2013 financial year? | A1: No

Relevant facts and circumstances: You are registered for GST. You do not carry on a business and your annual GST turnover does not exceed $2m. You report GST obligations quarterly. You are eligible to pay GST by instalments for the 2013 financial year. You were given the option of reporting GST by instalments on your quarterly BAS for the period ending 30 September 2012. You elected to report GST by instalments. On a date after 28 October 2012 you rang our office requesting to revoke your election and report GST using option 1 (full reporting). You were advised that this was not possible and to seek a private ruling on the matter. Subsequently we received your private ruling application requesting to revoke your election to pay GST by instalments and reissue the September 2012 BAS.

Relevant legislative provisions: A New Tax System (Goods and Services Tax Act) 1999 Section 162-15 | Subsection 162-30(1) | Subsection 162-30(2) | Paragraph 162-30(2)(b)

Reasons for decision: Summary: Pursuant to section 162-15 of the A New Tax System (Goods and Services Tax Act) 1999 (GST Act) you elected to pay GST instalments from 1 July 2012. Subsection 162-30(1) of the GST Act provides the circumstances an election to pay GST by instalments will cease to have effect and includes where you revoke the election by notifying the Commissioner in the approved form. Subsection 162-30(2) of the GST Act provides when a revocation of an election is taken to have had, or has, effect stating: (a) if you notify the Commissioner on or before 28 October in a *financial year - from the start of that financial year; or (b) if you notify the Commissioner after 28 October in a financial year - from the start of the next financial year. In this case, we received your written request to revoke your election after 28 October 2012. In accordance with paragraph 162-30(2)(b) of the GST Act, your election to pay GST by instalments would not cease until 1 July 2013 (i.e. the start of the next financial year). Should you wish to cease to pay GST by instalments from 1 July 2013, you should lodge your September 2013 quarterly Business activity statement (BAS) by the due date selecting either option 1 or option 2.