Refunding Excess GST
Draft legislation has been released by the Australian Government regarding the tax legislation that prevents taxpayers from obtaining a refund of GST already paid to the Commissioner if that GST was an overpayment due to a supply being incorrectly treated as taxable.
This draft legislation aims to clarify the circumstances in which the restriction on GST refunds applies to overpayments of GST and allows taxpayers to self-assess their entitlement to a GST refund using references to certain criteria. If the legislation is passed, the amendments would come in to effect for tax periods commencing on or after 17 August 2012.
The new measures have not yet progressed, however the ATO have advised that it will follow its current procedures until the new law comes into force.
Note: Please speak to your tax agent as soon as possible if you are concerned that these new laws may affect your GST liabilities.
Reference: CPA Australia 28.02.2013
The Money Edge | Bundaberg