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Do US government grants get included in G1?

Newbie

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Hi,

 

I have a question around how to approach US government grants in the BAS.

 

We are the recipient of a grant from the US government. The grant is income tax exempt and not subject to GST. We do not provide specific goods or services in return for the grant, it has been provided to help complete our research and development works.

 

I see government grants listed as "do include" in the G1 section of the BAS but that explicitly states where goods and services are provided in return for the grant which isn't the case here. 

 

We also received a small interest payment (under $15) from the US government due to a clerical issue on their end which caused late payment of the grant funding. I am also unsure if this should be included in G1 or not. 

 

Any guidance you could provide would be greatly appreciated

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Community Moderator

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Hi @Tonya 

 

If you will not be making any supplies for the grant you receive from the US Government then you are correct - the amount should not be reported at G1 What to report at G1.

 

Payment of interest is a payment for a financial supply. However depending on the grant agreement the additional $15 could be additional financial assistance that is not for a supply.

 

We have a ruling , GSTR 2012/2 - financial assistance payments that  assists business to determine if a financial assistant payment is for a supply. If you need more specific individual advice please send the details of the grant including any grant agreement to the ATO at GSTmail@ato.gov.au

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Community Moderator

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Hi @Tonya 

 

The treatment may be different as its a grant from a foreign government but we will look into it.

 

We will keep you posted.

Most helpful response

ATO Certified Response

Community Moderator

Replies 0

Hi @Tonya 

 

If you will not be making any supplies for the grant you receive from the US Government then you are correct - the amount should not be reported at G1 What to report at G1.

 

Payment of interest is a payment for a financial supply. However depending on the grant agreement the additional $15 could be additional financial assistance that is not for a supply.

 

We have a ruling , GSTR 2012/2 - financial assistance payments that  assists business to determine if a financial assistant payment is for a supply. If you need more specific individual advice please send the details of the grant including any grant agreement to the ATO at GSTmail@ato.gov.au