GST and surveying services connected with real property

Is the entity, a consultancy organisation, making a GST-free supply under item 1 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)(Item 1), when it surveys real property situated outside Australia?

Yes, the entity is making a GST-free supply under Item 1 when it surveys real property situated outside Australia.

The entity is a consultancy organisation. The entity surveys real property situated outside Australia.

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

Under section 38-190 of the GST Act, certain supplies of things other than goods or real property, for consumption outside of Australia, are GST-free. As a supply of surveying services is not considered to be a supply of goods or real property, its GST status is appropriately considered under section 38-190 of the GST Act.

Of most relevance to this case is Item 1, which deals with supplies that are connected with property outside Australia. Item 1 provides that a supply is GST-free where it is directly connected with goods or real property situated outside Australia.

The entity surveys real property situated outside of Australia. It is considered that a supply of surveying services is directly connected with the real property being surveyed. As such, the entity is making a supply that is directly connected with real property situated outside of Australia. Therefore, the entity is making a GST-free supply under Item 1 when it surveys real property situated outside Australia.