Issue
Is the entity, a supplier, required to register for goods and services tax (GST) under section 23-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when its turnover is below the registration turnover threshold?
Decision
No, the entity is not required to register for GST under section 23-5 of the GST Act when its turnover is below the registration turnover threshold.
Facts
The entity is a supplier. The entity is carrying on an enterprise. The entity's current annual turnover and projected annual turnover are below the registration turnover threshold as defined in section 23-15 of the GST Act.
Reasons for Decision
Section 23-5 of the GST Act provides that where an entity is carrying on an enterprise and its turnover meets the registration turnover threshold, it is required to be registered for GST.
In this case, the entity is carrying on an enterprise, however, its turnover is below the registration turnover threshold. Therefore, the entity is not required to be registered for GST under section 23-5 of the GST Act. [Note: If an entity is carrying on an enterprise or intends to carry on an enterprise it can choose to register for GST under section 23-10 of the GST Act even though its turnover is below the registration turnover threshold.]