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Is the entity, a supplier of funeral services, making a GST-free supply under subsection 15(2) of the A New Tax System (Goods and Services Tax Transition) Act 1999 (Transition Act), when it provides funeral services after 30 June 2000 under a funeral agreement, entered into before 1 December 1999 with the deceased, and receives full consideration for the services before 1 July 2005?

Yes, the entity is making a GST-free supply under subsection 15(2) of the Transition Act when it provides funeral services after 30 June 2000 under a funeral agreement, entered into before 1 December 1999 with the deceased, and receives full consideration for the services before 1 July 2005.

The entity is a supplier of funeral services. The entity entered into a funeral agreement with the deceased before 1 December 1999. The deceased died after 30 June 2000. The entity provides the funeral services as detailed in the funeral agreement. The entity receives full consideration for the services before 1 July 2005.

The entity is registered for goods and services tax (GST).

Subsection 15(2) of the Transition Act provides that if an entity enters into an agreement before 1 December 1999 to provide a funeral and the funeral is provided on or after 1 July 2000, the supply is GST-free to the extent that the consideration for the supply is paid before 1 July 2005.

The entity entered into a funeral agreement with the deceased before 1 December 1999. It provides the funeral services as detailed in the funeral agreement after 30 June 2000; and receives full payment for the funeral services before 1 July 2005.

Therefore, the entity is making a GST-free supply under subsection 15(2) of the Transition Act when it supplies the funeral services under the agreement with the deceased.