3A Accounting System

Wednesday, July 8, 2015

What is a Disregarded Supply?

For GST purpose, certain supplies are to be disregarded.
Examples are supplies between companies registered under GST who are members of a group given approval for Group Registration and supplies within and between warehouses approved under the Warehousing Scheme.

New DG's Decision 06/2015 Release 7 July 2015

New DG's Decision 06/2015. Can view from here.

Tax invoice for disregarded supply and out of scope supply.

(1) Every registered person shall issue a tax invoice when making any taxable supply of goods or services (s.33 GSTA) including taxable supply which is disregarded and granted relief.

(2) For the taxable supply which is disregarded or granted relief, the tax element in the tax invoice must be presented as ‘NIL’ and specified as ‘disregarded’ or ‘relief’.

(3) No tax invoice shall be issued for an out of scope supply or an exempt supply. However, if the transaction involves a combination of exempt supply and taxable supply, or taxable supply and out of scope supply, the registered person must issue a tax invoice and specify each type of the supply.
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