Recent ATO comments highlight the need to consider whether a grant may cause an entity that is not registered for GST to be obliged to register. The need for registration has implications both for the entity receiving the grant and the entity paying the grant.
This article discusses some aspects of the most recently published GST-States and Territories Industry Partnership Meeting Minutes.
GST registered organisations occasionally go through periods of significantly increased expenditure (e.g. construction of new buildings). This article canvases a potential response.
The first step when reviewing grants of financial assistance is to determine whether the payment has sufficient nexus to a supply. If the grant is being provided for a specific purpose e.g. to buy some equipment, the next step is to determine whether the amount to be paid should be for the GST-inclusive amount or […]
Provided that payments between government related entities meet the necessary conditions, such payments are not consideration for GST purposes and GST would not give rise to a GST liability or input tax credit entitlements. Care needs to be taken to ensure that the relevant conditions are met, and GST treatment is being correctly applied.