Private ruling: Goods and services tax (GST) and a supply of going concern
Date of advice: 28 July 2017
Published: November 2017

Ruling: A1: Yes. Your supply of the business will be a GST-free supply of a going concern under section 38-325 of the GST Act. Based on the information provided, on the settlement date you will be supplying to the Purchasers all of the things that are necessary for the continued operation of an enterprise. Furthermore, under the contract, you will continue the enterprise until the sale date of the settlement. In addition, you and the Purchasers have agreed in writing that the sale is a supply of a going concern. The Purchasers are required to register for GST and they will register for GST at the date of the settlement. Accordingly, your supply of the business to the Purchasers meets the requirements of a GST-free supply of going concern for the purposes of section 38-325 of the GST Act.




Issue: Is the supply of a business by you to the Purchasers a GST free supply of a going concern under section 38-325 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | Relevant facts: You are an Australian entity which is registered for GST. | You have entered into a contract of sale to sell your business to the purchasers for $XX, XXX.XX. | You will provide the Purchasers with all the necessary things to continue the business. | The Purchasers are currently not registered for GST. However, the Purchasers advised you that they are required to register for GST and they will be registered for GST at the date of the settlement. | Under the contract, you and the Purchasers agreed that the sale of the business is a GST-free supply of a going concern. | You will continue the enterprise until the date of the settlement. | You have provided a copy of sale contract.