Issue
Is the entity, a freight forwarding company, making a GST-free supply under item 7 in the table in section 38-355 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it arranges documentation for the international transport of goods?
Decision
Yes, the entity is making a GST-free supply under item 7 in the table in section 38-355 of the GST Act (Item 7) when it arranges documentation for the international transport of goods.
Facts
The entity is a freight forwarding company that is registered for goods and services tax (GST).
The entity arranges for the international transportation of a customer's goods. The transport is GST-free under item 5 in the table in section 38-355 of the GST Act (Item 5).
The entity also arranges the necessary documentation for the international transport of the goods and separately invoices the customer for this.
Reasons for Decision
Item 7 provides that certain supplies of arranging transport and insurance are GST-free. Under paragraph (b) of Item 7, arranging the international transport of goods covered by Item 5 is GST-free.
The entity arranges the necessary documentation for the international transport of the goods and separately invoices the customer for this. The arranging of documentation is part of arranging the international transportation of goods. The international transportation of goods that the entity arranges is GST-free under Item 5, and as such, the requirement in paragraph (b) of Item 7 is satisfied.
Therefore, the entity is making a GST-free supply under Item 7 when it arranges the documentation for the international transport of goods.