ap_gst21

GST is Paid by an Entity

carrying on an Enterprise

GST is paid by an entity carrying on an enterprise

GST is paid by an entity carrying on an enterprise

An entity may be registered for GST if it is carrying on an enterprise. Entity is defined in Section 195-1 to mean:

an individual;

a body corporate;

a corporation sole;

a body politic;

a partnership;

any other unincorporated association or body of persons;

a trust; and

a superannuation fund.

For a trust or superannuation fund the trustee is taken to be the entity.

Question :An individual may own several shops each conducting very different activities. Is each a separate entity?

No.

If an individual is operating several shops, for example, a bakery, a newsagency and a florist, he or she may do so as a single entity.

enterprise includes...

an activity or series of activities, conducted:

in the form of a business; or

in the form of an adventure or concern in the nature of trade; or

on a regular or continuous basis in the form of a lease, licence or other grant of an interest in property; or

by charitable institutions; or

by religious institutions; or

by gift deductible funds, authorities or institutions; or

by the Commonwealth, a State or a Territory or a Commonwealth, State or Territory corporation are also included.

An enterprise does not include activities done :

as an employee or other pay-as-you earn (‘PAYE’) taxpayer; or

as a private recreational pursuit or hobby; or

an activity or series of activities undertaken by an individual in a position as a local government member; or

by individuals (or partnerships of individuals) where there is no reasonable expectation of profit or gain.

Question: Could a PAYE taxpayer ever be required to pay GST?

Yes

A partner in an accounting firm accepts the directorship of a client company as part of the accounting firm’s normal services. Although the work of the director is done as an employee, the supply of services by the accounting firm is an activity within the meaning of an enterprise and the payment for the services is subject to GST.

Question

What is an example of an activity in the form of an adventure or concern in the nature of trade?

An entity making an isolated commercial transaction with a profit making intention, where any profits would be assessable for income tax purposes, is an example of an activity in the form of an adventure or concern in the nature of trade.