1.8 GST: GST payable or ITC available?

Introduced post-1 July 2000

GST payable or Input Tax
Credits receivable?

GST payable on taxable supply s7-1(1)

Taxable supply?
s9-5

Have you made a supply?

s9-10
- supply is any form of
supply whatsoever

Input tax credits arise on credible acquisitions s7-1(2)

If you have made a

creditable importation
entitled to ITC

S
No

Credible
acquisition? s11-5

If you have made a taxable

GST is payable
importation

Yes

No
You make supply for consideration
s9-15
- any payment, or any act or forbearance,
in connection with supply of anything
- req nexus between supply-consideration

Are you providing, or liable to

provide, consideration for the acq?
s9-15
- any payment, or any act or
forbearance, in connection with
supply of anything

R
Yes

Yes

You are registered, or required to be registered

s23-5
- if you are carrying on an enterprise (def: s9-20) +
current annual turnover $50k (s23-15(1)) or projected
annual T/O $50k (s188-10); [non-profit bodies $100k]

Yes
(b) supply made in the course or furtherance of an
enterprise that you carry on
s9-20
s195-1 definitions
- includes doing anything in the course of
commencement or termination of the enterprise
- excl activities of employees, hobbies/recreation, no
reasonable expectation of profits

Yes
A

F
A

Yes

It is wholly GST-free or input taxed?

s9-30
- Div 38, Div 40 items excluded

Have you made an acquisition?

s11-10
- acq is any form of acq
whatsoever
Yes

Yes
Supply connected with Australia
s9-25

Exception to input taxed financial supplies (s40-5):

If in the current yr (s189-5) or nxt yr (s189-10), either:
1) Credits <$50k; or
2) fins supply credits <10% of total credits
Creditable purpose!

Input taxed fins supply?

Solely or partly for credible purpose

s11-5
- to the extent that you acquire it in carrying on
your enterprise (1)
BUT NOT CP IF:
-acquisition relates to making supplies that would
be input taxed s11-15(2)(a) or private/domestic
(2)(b)
Yes

N
T
NO

Was the supply of the thing to you

a taxable supply?
s9-5
Yes

No
NO GST Payable or
Input tax credit available
GST payable

Input tax credit available

s11-20
- credit = GST paid on
supply s11-25

GST & Input Tax Credits netted off s7-5.

Payments and refunds available under s7-15.
Other info
- supplier is liable for GST s9-40
Deductions
s275
- GST is 10% of value of taxable supply s9-70, 9-75 (formula)
s17-5
AI
- credit not available to the extent it is a non-deductible expense (div 69)
Definitions
- credit not available for proportion of motor vehicle >$57,009 (s69-10)
Taxable importation s13-5
importation of goods into AUS for home
- credit not available to property under margin scheme (s72-50)
consumption; importer is liable for GST and is calculated on gross value of:
- accruals method should be used unless 1)T/O<$1mil; 2)accts for income tax
customs value+intl transportation+customs duty+wine tax (s13-20)
on cash basis 3)commissioner; OR 4)charity/gift deductible entity/govt school
10% is payable on-top of value!
- monthly tax period for T/O >$20mil (s27-15(3)), and lodged on 21st of nxt mth
Creditable importation s15-5
import goods solely/partly for creditable purpose, - cannot claim ITC if no tax invoice received s29-10(3)
where it is a taxable importation
- refer to s19-10 to check if adjustment events are relevant
no GST on supply
- inhouse fringe benefits
Ken Choi 2007

1.8 GST: GST payable or ITC available? p2

Ken Choi 2007