Issue
Is the entity, a supplier of goods and services, making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies those goods and services in the course of its enterprise?
Decision
Yes, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies goods and services in the course of its enterprise.
Facts
The entity is a supplier of goods and services. The entity is supplying those goods and services in return for consideration, and the supply is in the course or furtherance of its enterprise. The supply is taking place in Australia and the entity is registered for goods and services tax (GST).
The supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act.
Reasons for Decision
Section 9-5 of the GST Act provides that an entity is making a taxable supply where: • the entity makes the supply for consideration; and • the supply is made in the course or furtherance of an enterprise carried on by the entity; and • the supply is connected with Australia; and • the entity is registered or required to be registered for GST; and • the supply is neither GST-free nor input taxed.
The entity is registered for GST and the supply satisfies all of the other positive limbs of section 9-5 of the GST Act. Furthermore, as the supply is neither GST-free nor input taxed, it is not excluded by the negative limb of section 9-5 of the GST Act.
Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies its goods and services.