GST On Fines Or Penalties That Made By Non-Government Organization

Q&A Tax

Question :

A Company who is a Not-for-Profit Organization has the ability to fine/penalty its members if they
breach the ‘Code of Conduct” or “Internet Policy”.

Today’s question is :

Do the fines & Penalties make by the company subject to GST?


Answer :

GSTD 2005/6 states that there is no supply made by an association when it imposes a fine or penalty
on a member for a breach of its membership rules.

This means that there should be no GST liability for the association.

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