Private ruling: GST-free supplies treated as taxable, but GST not passed on.
Date of advice: 18 May 2018
Published: July 2018

Ruling: Q1: Are the administrative and other services provided by you GST-free? | A1: Yes | Q2: Can you claim back the excess GST paid for your services? | A2: Yes, but only for the previous four years (see reasoning below).

Relevant facts and circumstances: You provide administrative and other services in relation to family day care centres and those supplies are covered by GSTD 2001/1 and are GST-free. You did not charge GST on your services but reported them as taxable supplies.

Relevant legislative provisions: A new Tax System (Goods and Services Tax) Act 1999 sub section 38-140 | A new Tax System (Goods and Services Tax) Act 1999 sub section 38-145 | A new Tax System (Goods and Services Tax) Act 1999 sub section 38-150 | A new Tax System (Goods and Services Tax) Act 1999 sub section 142-10 | Taxation Administration Act 1953 section 155-40

Reasons for decision: Summary: You made supplies which are GST-free under GSTD 2001/1, but because of a reporting error treated those supplies as taxable. You did not pass on the excess GST. Consequently sub section 142-10 does not apply to prevent a refund of the excess GST. Please note that there is a four year time limit in relation to amending activity statements. The four year time limit is referred to as the period of review (POR) and ends 4 years and 1 day from the date the original activity statement was lodged (section 155-40 of Schedule 1 to the Taxation Administration Act 1953 ). This means you can only revise activity statements that are still within the 4 year time limits.