GST: consideration for acquiring capital items and GST-free supplies - GSTD 2013/D3
30 May 2013
On 29 May 2013, the ATO released for public comment by 26 June 2013 draft GST Determination GSTD 2013/D3 entitled "Goods and services tax: can the consideration the supplier provides for acquiring capital items be included in calculating whether a supply is GST-free under s 38-250(2)(b)(ii) of the A New Tax System (Goods and Services Tax) Act 1999?"
The answer given to the question asked is as follows:
"Yes. A portion of the consideration the supplier has provided for acquiring capital items that diminish in value over time can be included when calculating whether a supply in that period is GST-free under subparagraph 38-250(2)(b)(ii) of the A New Tax System (Goods and Services Tax) Act 1999, where the capital items are utilised in making the supply."