Issue
Can the entity, an individual, 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 it is not carrying on, and does not intend to carry on, an enterprise?
Decision
No, the entity cannot register for GST under section 23-10 of the GST Act when it is not carrying on, and does not intend to carry on, an enterprise.
Facts
The entity is an individual. The entity is not carrying on, and does not intend to carry on, an enterprise.
Reasons for Decision
Under section 23-10 of the GST Act 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); or • the entity intends to carry on an enterprise from a particular date.
In this case, the entity is not carrying on an enterprise nor does it intend to carry on an enterprise. Therefore, the entity cannot register for GST under section 23-10 of the GST Act. [Note: If an entity intends to carry on an enterprise from a particular date, it can be registered for GST under subsection 23-10(2) of the GST Act].