A New Tax System (Goods and Services Tax) Act 1999
Chapter 2
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The basic rules
Part 2-2
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Supplies and acquisitions
Division 9
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Taxable supplies
Subdivision 9-A
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What are taxable supplies?
9-30
Supplies that are GST-free or input taxed
GST-free
(1)
A supply is GST-free if:
(a) it is GST-free under Division 38 or under a provision of another Act; or
(b) it is a supply of a right to receive a supply that would be GST-free under paragraph (a).
Input taxed
(2)
A supply is input taxed if:
(a) it is input taxed under Division 40 or under a provision of another Act; or
(b) it is a supply of a right to receive a supply that would be input taxed under paragraph (a).
Supplies that would be both GST-free and input taxed
(3)
To the extent that a supply would, apart from this subsection, be both * GST-free and * input taxed :
(a) the supply is GST-free and not input taxed, unless the provision under which it is input taxed requires the supplier to have chosen for its supplies of that kind to be input taxed; or
(b) the supply is input taxed and not GST-free, if that provision requires the supplier to have so chosen.
Supply of things used solely in connection with making supplies that are input taxed but not financial supplies
(4)
A supply is taken to be a supply that is * input taxed if it is a supply of anything (other than * new residential premises ) that you have used solely in connection with your supplies that are input taxed but are not * financial supplies .
GST-free
(1)
A supply is GST-free if:
(a) it is GST-free under Division 38 or under a provision of another Act; or
(b) it is a supply of a right to receive a supply that would be GST-free under paragraph (a).
View history note
Hide history noteInput taxed
(2)
A supply is input taxed if:
(a) it is input taxed under Division 40 or under a provision of another Act; or
(b) it is a supply of a right to receive a supply that would be input taxed under paragraph (a).
Note:
If a supply is input taxed, there is no entitlement to an input tax credit for the things that are acquired or imported to make the supply (see sections 11-15 and 15-10 ).
Supplies that would be both GST-free and input taxed
(3)
To the extent that a supply would, apart from this subsection, be both * GST-free and * input taxed :
(a) the supply is GST-free and not input taxed, unless the provision under which it is input taxed requires the supplier to have chosen for its supplies of that kind to be input taxed; or
(b) the supply is input taxed and not GST-free, if that provision requires the supplier to have so chosen.
Note:
Subdivisions 40-E (School tuckshops and canteens) and 40-F (Fund-raising events conducted by charities etc.) require such a choice.)
Supply of things used solely in connection with making supplies that are input taxed but not financial supplies
(4)
A supply is taken to be a supply that is * input taxed if it is a supply of anything (other than * new residential premises ) that you have used solely in connection with your supplies that are input taxed but are not * financial supplies .
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