Issue
Can the entity, an entity that intends to carry on an enterprise, have the date of effect of its goods and services tax (GST) registration under subsection 25-10(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), as a day prior to the day from which the entity intends to carry on its enterprise?
Decision
No, the entity cannot have the date of effect of its GST registration under subsection 25-10(1) of the GST Act, as a day prior to the day from which the entity intends to carry on its enterprise.
Facts
The entity intends to carry on an enterprise. The entity applies for GST registration. In its application for GST registration, the entity specifies the day from which it intends to carry on its enterprise. The entity also requests that its GST registration commence on a day prior to the day from which it intends to carry on its enterprise.
Reasons for Decision
Under subsection 25-10(1) of the GST Act, the Commissioner must decide the date from which an entity's GST registration takes, or took, effect. However, this decision is subject to the parameters outlined in paragraphs 25-10(1)(a) to 25-10(1)(c) of the GST Act.
Paragraph 25-10(1)(c) of the GST Act provides that if an entity is being registered only because it intends to carry on an enterprise, then the date of effect must not be a day before the day specified, in the entity's registration application, as the day from which the entity intends to carry on its enterprise.
Therefore, the entity cannot have the date of effect of its GST registration under subsection 25-10(1) of the GST Act, as a day prior to the day from which the entity intends to carry on its enterprise.