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In Scenario 3, does GST apply to the: (a) non-refundable deposit; and (b) licence fee?

April 26, 2017deposit fee GST licence non-refundable scenario

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In Scenario 3, does GST apply to the: (a) non-refundable deposit; and (b) licence fee?

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(a) Yes, in this scenario, the non-refundable deposit is subject to GST because it is consideration for a supply that is made after 30 June 2000 (given that the contract is entered into after that date). (b) No, the licence fee is consideration for an input taxed supply and therefore, not subject to GST. This is despite the fact that the period for which the property is occupied starts after 30 June 2000.