GST and religious practitioner purchasing religious tracts and selling to church members

Under section 50-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when the entity, a religious practitioner, purchases and then sells religious tracts to members of their religion, is that activity treated as an activity done by the religious institution of which the entity is a member?

Yes, under section 50-5 of the GST Act, the activity is treated as an activity done by the religious institution of which the entity is a member, rather than being done by the entity.

The entity is a religious practitioner. The entity purchases religious tracts, which set out the doctrines and practices of the entity's religion. The entity subsequently sells the religious tracts to members of the entity's religion.

The entity sells the religious tracts during the course of conducting their activities as a religious practitioner and as a member of the religious institution. The entity does not carry out this activity as an employee or agent of the religious institution or any other entity.

Section 50-5 of the GST Act provides that activities of a religious practitioner done in pursuit of their vocation as a religious practitioner and as a member of a religious institution will be treated, for the purposes of applying the GST law, as activities done by the religious institution and not by the religious practitioner, unless the religious practitioner is acting as an employee or agent of the religious institution or another entity.

During the course of conducting their activities as a religious practitioner, the entity purchases religious tracts and sells them to members of their religion. The religious tracts set out the doctrines and practices of the entity's religion and the purchase and sale of the tracts forms part of the normal activities of the entity's vocation as a religious practitioner. In addition, the entity is a member of a religious institution and is not an employee or agent of the institution or another entity.

Accordingly, under section 50-5 of the GST Act, the activity of purchasing religious tracts and then selling them to members of the entity's religion is treated as an activity done by the religious institution, of which the entity is a member, rather than being done by the entity. Note. Section 195-1 of the GST Act defines the term 'religious practitioner' to mean: • a minister of religion • a student at an institution who is undertaking a course of instruction in the duties of a minister of religion • a full-time member of a religious order, or • a student at a college conducted solely for training persons to become members of religious orders.