Issue
Is the entity, a partner in a partnership, required to be registered under section 23-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when the only activity of that entity is being a partner in a partnership that is registered for goods and services tax (GST)?
Decision
No, the entity is not required to be registered under section 23-5 of the GST Act when the only activity of that entity is being a partner in a partnership that is registered for GST.
Facts
The entity is a partner in a partnership. The only activity of the entity is being a partner in a partnership. It does not do any other activity that constitutes the carrying on of an enterprise. The partnership is registered for GST.
Reasons for Decision
Under section 23-5 of the GST Act, one of the requirements for an entity to be registered is that an entity must be carrying on an enterprise. In this case, the entity's activities as a partner in a partnership do not amount to carrying on an enterprise in its own right. Under section 184-5, anything done by a partner by way of supply, acquisition or importation in his capacity as partner of the partnership is taken to be by done by the partnership and not by the partner. It is the partnership that is carrying on the enterprise, not the partner.
As an individual, the entity is not doing any other activity that constitutes the carrying on of an enterprise.
Therefore, the entity is not carrying on an enterprise. As such, the entity is not required to be registered under section 23-5 of the GST Act when the only activity of that entity is being a partner in a partnership that is registered for GST.