GST and importation of unrefined gold

Is the entity, an importer, making a taxable importation under section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it imports unrefined gold?

Yes, the entity is making a taxable importation under section 13-5 of the GST Act when it imports unrefined gold.

The entity is an importer. The entity imports unrefined gold into Australia. The unrefined gold has been entered for home consumption within the meaning of the Customs Act 1901 . The importation of the unrefined gold is not a non-taxable importation under Part 3-2 of the GST Act.

Under section 13-5 of the GST Act, an entity makes a taxable importation if: • it imports goods; and • the goods are entered for home consumption within the meaning of the Customs Act.

In this case, the entity is importing the goods for home consumption within the meaning of the Customs Act.

However, an importation is not a taxable importation to the extent that it is a non-taxable importation. Section 13-10 of the GST Act states that an importation is a non-taxable importation if: • it is non-taxable under Part 3-2 of the GST Act; or • it would have been a supply that was GST-free or input taxed if it had been a supply.

The importation of the unrefined gold is not covered by Part 3-2 of the GST Act. Section 38-385 of the GST Act provides that, when the requirements of the section are met, the first supply of a precious metal after it is refined is GST-free. The gold imported by the entity is unrefined gold and therefore the requirements of section 38-385 of the GST Act would not be met.

The importation by the entity meets the positive limbs of section 13-5 of the GST Act. Furthermore, the importation is neither a non-taxable importation under Part 3-2 of the GST Act nor would it have been GST-free under Division 38 of the GST Act or input taxed under Division 40 of the GST Act had the importation been a supply. Therefore, the entity is making a taxable importation under section 13-5 of the GST Act when it imports unrefined gold.