High Court holds s 19(3B) of the GST Act overrides s 19A(2); and whether registered person ceased to satisfy s 19A(1) requirements is determined at date of notification

The plaintiff companies challenged the Commissioner’s decision not to direct them to account for GST on the invoice accounting basis under s 19A(2) of the Goods and Services Tax Act 1985 (GSTA).

The liquidator said he was required, under s 53(1)(cb) of the GSTA, to notify the Commissioner that the plaintiff companies had ceased to satisfy the requirements for payments basis and the Commissioner must therefore direct the companies to account for GST on an invoice basis.

The High Court held that s 19(3B) of the GSTA overrides or precludes the Commissioner frombeing required to give a direction under s 19A(2) and that the Commissioner must be satisfied at the time of notification that a registered person has ceased to satisfy the conditions in s 19A(1).