30 Oct 088 Goods and services tax: cancellation fees - GSTR 2008/D4Draft GST Ruling GSTR 2008/D4 was released on 29 October 2008 and its full title is "Goods and services tax: cancellation fees". GSTR 2008/D4 considers the GST consequences resulting from payments made when an arrangement under which a particular supply was intended to be made does not proceed or does not proceed in the manner originally contemplated. These payments can include the forfeiture of all or part of the consideration for the intended supply.
In considering the GST consequences of cancellation fees, this draft Ruling principally examines whether there is a supply for which a cancellation fee is consideration. The draft Ruling also discusses the interaction between security deposits and cancellation fees as well as the circumstances in which a cancellation fee is not consideration for a supply.
For a copy of GST 2008/D4 go here.