On 25 March 2015 the ATO issued a new GST ruling GSTR 2015/1 entitled “Goods and services tax: the meaning of the terms ‘passed on’ and ‘reimburse’ for the purposes of Division 142 of the A New Tax System (Goods and Services Tax) Act 1999”.
The ruling explains the Commissioner’s view on the meaning of the terms “passed on” and “reimburse” for the purposes of determining whether s 142-10 of the GST Act applies to an amount of excess GST.
Part A of the Ruling sets out the Commissioner’s views on when an amount of excess GST has been passed on to another entity.
Part B of the Ruling discusses the circumstances in which the Commissioner considers an amount of excess GST, which has been passed on to another entity, has been reimbursed to that other entity.
The ruling was previously issued in draft as GSTR 2014/D4.