GST is an indirect tax, which means that it is imposed by a central government on goods and services that are not subject to GST.
GST exemptions are based on the value of the goods or services produced and sold.
This can be different for each country and individual goods and/or services.
For example, if you buy a car and pay GST on it, it will be taxed as if it were a car, and you will not pay any GST on any other goods and supplies.
The exemption of an organisation is based on whether the organisation has: 1.
a GST exemption and/ or a tax credit that allows it to be taxed on its income.
a non-GST exemption and the ability to take advantage of an alternative rate structure, such as a surcharge.
a taxable unit of stock, stock exchange or other interest in a corporation.
If you have an exemption, the value in relation to the exemption can be used to determine whether it is eligible for the GST exemption.
For more information, see GST exemption for non-exempt organisations.
GSA: GST on Goods and Services Source: Business and Taxation Services Legislation Amendment (GST) Bill 2017 – Section 111 1GSA: GSA exempt organisations – GSA exemptions 1.
In this Act: 1A non-exempt organisation is an organisation that: (a) is not an exempt organisation under this Act, but is a registered organisation; and (b) has not complied with subsection 2(1A) of the GSA Act 1997 (GSA exemption for organisations).
An exempt organisation is a body corporate, limited liability company or partnership that is not subject, under a law of the Commonwealth or of a State or Territory, to the jurisdiction of a court of competent jurisdiction.
An exempt body corporate or limited liability partnership is an entity whose declared capital, assets and liabilities are at least $100 million.
This subsection does not apply to an entity that is a taxable entity (within the meaning of section 61 of the Corporations Act 2001), and is not a registered entity.
An entity is a non‑exempt organisation if it: ( a ) is subject to the GST Act; and 3.
The entity is exempt under section 111.
An organisation that is exempt on the basis of subsection 1 is a charitable body.
This paragraph does not limit the type of exempt organisation that can be exempt under the GSS Act.
The term exempt organisation does not include a charity that: 1 .
is exempt from the GST and has not yet taken the required steps under subsection 1 to become exempt; or 2.
is exempt by reason of subsection 2 or 3 of the GST (exempt organisation) Act 1997.
If the entity meets the requirements of subsection 3, then the exemption under subsection 2 is satisfied.
A body corporate that is exempted under subsection 3 is an exempt body corporation.
An exception to this paragraph applies where the exemption applies to the body.
For further information, including the definition of exempt body, see the definition in the GST Legislation Amendment Act 2017.
The terms exempt body and exempt body are defined in section 110 of the Act.
A charity that is an exempted body corporation may be exempt from its tax on the profits of its activities under this section by virtue of paragraph 1(a) of section 111(1).
This Act does not prevent a body from being exempt from being subject to an income tax or GST liability, or an amount payable by a body to an employee under the provisions of a contract or arrangement.
The exemptions of exempt bodies are not affected by this Act.
If an exempt entity is subject, by virtue or otherwise, to an amount of a tax, GST or other tax, it is also subject to that amount.
For the purposes of subsection 4, a body is exempt if it is a charity.
For a body that is subject under this Part to a GST, GST (other than an amount or rate of the payment of which is not otherwise taxable) or other amount of taxation (including a surtax) to which a non‐exempt body is a party, the body has complied with the relevant requirements of the tax, tax (other) or tax (rate) provisions of the relevant laws of a country, and has complied in a way that is compatible with the requirements there of. 7.
For an exemption of a body, the following matters are relevant: a. whether the body is an individual entity (as defined in subsection 3(1)) or a corporation; and b. the amount, amount of or rate that the body would have been required to pay under the relevant tax, rate or other law of a foreign country or a foreign jurisdiction.
The purposes of this Part do not apply if the exemption is imposed