GST and registration of a government body

Can the government body register for goods and services tax (GST), under section 23-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), despite the fact that it does not satisfy the definition of 'entity' in section 184-1 of the GST Act?

Yes, the government body can register for GST under section 23-10 of the GST Act despite the fact that it does not satisfy the definition of 'entity' in section 184-1 of the GST Act. This is because it is a 'government entity' as defined in section 41 of the A New Tax System (Australian Business Number) Act 1999 (ABN Act).

The government body does not satisfy the definition of 'entity' contained in section 184-1 of the GST Act.

The government body is not an entity. It was established for a public purpose by an Australian law and can be separately identified by reference to the nature of the activities carried on through the organisation.

The government body is part of a government department, which is itself a 'government entity' that is registered for GST.

Under section 23-10 of the GST Act, an 'entity' may be registered for GST if: • it is carrying on an enterprise; or • it intends to carry on an enterprise from a particular date.

The word 'entity' is defined in section 184-1 of the GST Act. The government body does not satisfy this definition and therefore, is not an 'entity' for the purposes of the GST Act.

However, Division 149 of the GST Act allows parts of the Commonwealth, State or Territory to register for GST even if they do not meet the definition of 'entity' in section 184-1 of the GST Act.

Subsection 149-5(1) of the GST Act allows a 'government entity' to apply to be registered for GST under section 23-10 of the GST Act even if: • it is not an entity; and • it is not carrying on an enterprise or is not intending to carry on an enterprise.

The term 'government entity' is defined in section 195-1 of the GST Act as having the meaning given by section 41 of the ABN Act. Paragraph (e) of that section provides that a government entity is an organisation that: • is not an entity; and • is either established by the Commonwealth, a State or a Territory (whether under a law or not) to carry on an enterprise or established for a public purpose by an Australian law; and • can be separately identified by reference to the nature of the activities carried on through the organisation or the location of the organisation;

The government body does not satisfy the definition of 'entity' in section 184-1 of the GST Act. Further, it was established for a public purpose by an Australian law and can be separately identified by reference to the nature of the activities carried on through the organisation.

Although the government body does not satisfy the definition of 'entity' in section 184-1 of the GST Act, it does satisfy the definition of 'government entity' in section 41 of the ABN Act.

Therefore, as the government body is a 'government entity', it may apply, under section 23-10 of the GST Act, to be registered for GST, despite the fact that it does not satisfy the definition of 'entity' in section 184-1 of the GST Act. Note 1: Section 149-10 of the GST Act provides that a government entity is not required to be registered even if it is carrying on an enterprise and its annual turnover meets the annual turnover threshold. Accordingly, the government body may choose whether to register for GST or not. If the government body chooses to register for GST, then the government body will be liable for GST on the taxable supplies that it makes. Note 2: If the government body chooses not to register for GST, the government department that it belongs to will be liable for GST on the taxable supplies made by the government body.