Issue
Can the entity, a supplier of goods and services, register for goods and services tax (GST) under section 23-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when its turnover is below the registration turnover threshold?
Decision
Yes, the entity can register for GST under section 23-10 of the GST Act when its turnover is below the registration turnover threshold.
Facts
The entity is a supplier of goods and services. The entity is carrying on an enterprise. The entity's current annual turnover and projected annual turnover are below the registration turnover threshold as defined in section 23-15 of the GST Act.
Reasons for Decision
Section 23-10 of the GST Act provides that an entity may be registered for GST if the entity is carrying on an enterprise (whether or not the entity's turnover is at, above or below the registration turnover threshold).
In this case, the entity is carrying on an enterprise. Therefore, although the entity's turnover does not meet the registration turnover threshold, it can register for GST under section 23-10 of the GST Act. [NOTE: If an entity is carrying on an enterprise and its turnover meets the registration turnover threshold, it is required to be registered for GST under section 23-5 of the GST Act.]