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Obscure GST question


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9 replies to this topic

#1 Lees75

Posted 01 August 2019 - 10:43 AM

My googling skills are letting me down!

Most government departments have to pay GST, like any other consumer. Do they claim this back from the ATO?

#2 PrincessPeach

Posted 01 August 2019 - 10:49 AM

some will be able to, some won't. It all depends on what the service they supply is.

#3 Lees75

Posted 01 August 2019 - 11:00 AM

What about government funding bodies like DVA and NDIA?

#4 Demera

Posted 01 August 2019 - 11:06 AM

The organisation I work for (Statutory Authority) pays GST on items then claims it back.

#5 It's Percy

Posted 01 August 2019 - 11:22 AM

Government departments are like normal businesses. They lodge BAS's like businesses and can claim the GST they pay against any GST they collect from third parties.

#6 ipsee

Posted 01 August 2019 - 01:53 PM

I thought Govt just didn't pay GST.

#7 rileys-mum

Posted 01 August 2019 - 03:01 PM

Depends on the service that they provide.
If they are the funding body even for a GST exempt product the service is facilitating the transfer of funding which in its nature is not GST exempt despite the fact the payment goes to an end product or service that may be GST exempt.Therefore they pay GST.

#8 Lees75

Posted 01 August 2019 - 03:25 PM

But can they claim it back?

For example, reports for DVA have GST. (Therapy doesn’t). So DVA pays me GST, I pay it to ATO with my quarterly BAS statement. But can DVA claim it back from the ATO?

#9 born.a.girl

Posted 01 August 2019 - 04:09 PM

View PostLees75, on 01 August 2019 - 03:25 PM, said:

But can they claim it back?

For example, reports for DVA have GST. (Therapy doesn’t). So DVA pays me GST, I pay it to ATO with my quarterly BAS statement. But can DVA claim it back from the ATO?

GST is a retail tax, so presumably.


I guess the system's designed so that anything that's partly a profit making aspect of the the government is not given an unfair advantage over private industry.


ETA: By that I meant, not comparable to the old days where they were exempt from Sales Tax, unless the item was for a venture that was profit making. Didn't stop every person who ever signed an order signing the tax exemption.   They got a few letters after the three sales tax audits that I had in the 12 years I was there.  I still remember the saga of the CSIRO one for $9 that went on for months!

Edited by born.a.girl, 01 August 2019 - 04:52 PM.


#10 SplashingRainbows

Posted 01 August 2019 - 04:38 PM

The entity would have to be carrying on an enterprise and making supplies that were not input taxes supplies.

GST is designed (generally) to be borne by the end taxpayer, as in walking talking taxpaying humans.

It would be highly unusual if they couldn’t claim it back.




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