TAXATION LAW. TAXATION LAW. Name of the Student:. Name

Running head: TAXATION LAW
TAXATION LAW
Name of the Student:
Name of the University:
Author Note:

Running head: TAXATION LAW
Issue:
The issue which is required to be discussed here is whether ITC can be availed by the
said company.
Rules:
An Input tax credit or ITC is also regarded as a GST credit. It is a credit that can be
claimed by a taxpayer in respect of the GST amount which is included in the cost of the services
or goods called the inputs availed for using in the business of such taxpayer. Input tax credit can
be claimed only when the taxpayer is registered for GST application. Here the issue is to be
analyzed in the light of Goods and Services Tax 1999 or GSTA. This has been discussed u/s 7.1
of the Act. However, two conditions are required to be fulfilled such that GST is imposed. Those
are taxable importation and taxable supplies.
Moreover, in order to claim ITC can be claimed when two conditions are established
which are creditable acquisitions as well as creditable importations.
The taxable importations or taxable supplies denote those supplies or importations that
are made by any organization which has been registered under GST scheme or has eligibility
under the GST for availing it.
Any company which has been registered or has earned the eligibility of getting registered
when get involved in any creditable importation or acquisition will be eligible to claim GST
credits which are already paid for the services or goods related to ITC. Any company or
organization undergoing business activities and are not excluded by statutory provisions must be
eligible to avail services or goods in order to make taxable supplies that cannot be claimed by the

Running head: TAXATION LAW
companies or organizations that act as end consumers. This can be supported by the judgment of
FC of T v Reliance Carpet Co Pty Ltd 2008 ATC ¶20-028.
Section 9.5 states provisions of taxable supplies. According to this section, a taxable
supply occurs when such supply is provided with consideration. This supply must be made when
a business is carried out and it must be related to indirect taxation. The supplier is also required
to undergo registration. However, no supply will be subjected to taxation when it is input taxed
or devoid of GST.
The creditable acquisitions are given in section 11.5 which enumerates that in case
anything is acquired for creditable purpose either partly or absolutely then a creditable
acquisition takes place. Such creditable acquisition also happens when anything taxable is
supplied. The tax payer has to be registered also. Acquisition is being defined in section 11.10
and it states that it includes acquisition made in respect of goods, services, rights or supply. This
input tax claim can be availed in case of creditable acquisitions.
Section 9.70 enumerates that GST on taxable supply is equal to 10% of the value of
taxable supply. Under section 9.75, value of any taxable supply is equal to the product of price
and 10/11. Price here is the consideration.
Application:
This case study enumerates that a company is established for the purpose of developing
and investing and it is named as City Sky Co. Land is bought by it in Brisbane. The purpose
behind such purpose is building 15 number apartments and selling them. It can be presumed that
it had availed GST registration as per the given situation.