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GST on second hand goods

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LJB
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To claim a GST credit for second hand goods purchased GST free from a private seller, Is the legislation directed solely to second-hand dealers?  If a mechanic is asked by a large customer to find them vehicles, do them up, and then on-sell the refurbished vehicles to them, could that be considered "ordinary course of business", and they would qualify for the GST claim upon the sale of the vehicle to that customer? 

 

Or should we be looking at getting a private ruling?

 

Also, could they be consider a Motor Dealer in that case?

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Anonymous

Replies 0

Hi @LJB 

 

This is a very interesting issue, and whether it applies in your presented senario is not really clear as more information is required in my opinion.  The best approach as you already know is to apply for a private ruling.

 

Have a read of this Goods and Services Tax Determination GSTD2013/2 as I think it may assist you when putting your case forward in your ruling (in particular refer the examples).

 

ATO 13 28 66

1 REPLY 1

Best answer

Anonymous

Replies 0

Hi @LJB 

 

This is a very interesting issue, and whether it applies in your presented senario is not really clear as more information is required in my opinion.  The best approach as you already know is to apply for a private ruling.

 

Have a read of this Goods and Services Tax Determination GSTD2013/2 as I think it may assist you when putting your case forward in your ruling (in particular refer the examples).

 

ATO 13 28 66

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