Ruling Compendium
GSTR 2009/3-2EC
Compendium
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Please note that the PDF version is the authorised version of this ruling.
FOI status:
not legally binding| This edited version of the Compendium of Comments is not intended to be relied upon. It provides no protection from primary tax, penalties, interest or sanctions for non-compliance with the law. |
This is a compendium of responses to the issues raised by external parties to 2009/3DA - Draft Goods and Services Tax Ruling Addendum - cancellation fees.
This compendium of comments has been edited to maintain the anonymity of entities that commented on the draft ruling.
Summary of issues raised and responses
| Issue No. | Issue raised | Tax Office Response/Action taken |
|---|---|---|
| 1 | Paragraphs 74 to 76 of GSTR 2009/3 addressing adjustment events need to be expanded as a result of the High Court decision in Commissioner of Taxation v. Qantas Ltd [2012] HCA 41 (Qantas). The High Court did not comment upon whether a 'no-show' is an adjustment event, being an event which has the effect of cancelling a supply or acquisition (paragraph 19-10(1)(a)). In the Qantas decision impact statement and in private rulings since then, the Commissioner has stated that he does not believe a 'no show' is an adjustment event. It is recommended that paragraphs 74 to 76 be extended to state these views, plus the reasons for them. |
Paragraph 21 of GSTR 2009/3 contains the Commissioner's view that a supply is still made in a no-show scenario. Paragraph 76A has been inserted into the Ruling to clarify this view further in relation to adjustments. Further, GSTR 2000/19 contains the Commissioner's views in relation to making adjustments under Division 19 for adjustment events. In particular, paragraphs 16 and 17 of GSTR 2000/19 address the cancellation of a supply or acquisition. |
| 2 |
Expand Discussion Where the supply of a service or right for which GST is attributed to one tax period and is cancelled in a later tax period, that the payment of a refund (rather than the cancellation itself) is treated as an adjustment event per paragraph 19-10(1)(b) |
This issue is beyond the scope of GSTR 2009/3 and is instead discussed in GSTR 2000/19. See paragraph 17 of GSTR 2000/19 for an example where the return and associated refund cancels the supply and gives rise to an adjustment event. |
| 3 |
Expand Discussion Where the supply of a service or right for which GST is attributed to one tax period and is cancelled in a later tax period, if there is no payment of a refund, the Commissioner does not believe that an adjustment event has occurred. The Commissioner has presented a view in private correspondence that paragraph 19-10(1)(a) has no independent operation and certainly cannot apply for supplies of services or rights for which consideration is paid but not refunded. |
This issue is beyond the scope of GSTR 2009/3 and the Commissioner's view as to whether an adjustment event arises upon a cancellation is discussed in paragraphs 16 and 17 of GSTR 2000/19. |
References
Relevant (draft) Ruling/Determination
GSTR 2009/3
GSTR 2009/3A2 - Addendum
GSTR 2009/3DA - Draft Addendum