Issue
Is the entity, a supplier of goods and services that is not registered or required to be registered for goods and services tax (GST), making a taxable supply under section 9-5 of the A New Tax System (Goods & Services Tax) Act 1999 (GST Act), when it supplies goods and services to a recipient that is registered for GST?
Decision
No, the entity is not making a taxable supply under section 9-5 of the GST Act when it supplies goods and services to a recipient that is registered for GST.
Facts
The entity is a supplier of goods and services. The entity is not registered or required to be registered for GST. The entity supplies goods and services to a recipient that is registered for GST.
Reasons for Decision
Section 9-40 of the GST Act provides that an entity must pay the GST payable on any taxable supply that it makes.
Section 9-5 of the GST Act sets out all of the requirements that must be met for a supply to be taxable. One of the requirements is that the supplier must be registered or required to be registered for GST (paragraph 9-5(d) of the GST Act).
In this case, the entity is not registered for GST and is not required to be registered for GST. As such, the entity is not making a taxable supply under section 9-5 of the GST Act when it supplies goods and services to a recipient who is registered for GST. [Note: In determining whether the entity is making a taxable supply under section 9-5 of the GST Act, the GST registration status of the recipient is not relevant.]