Q: Two unrelated parties, A and B, jointly own a commercial property. They are both registered for GST jointly for this property. If A sells its share of the property to a third party unrelated to A or B, is it a non-taxable supply since A is not individually registered for GST?
A: When a partner sells their share in a partnership, it's not considered outside the scope of GST. Instead, it's treated as if all the partnership assets are being sold to a new partnership. This means it could be a taxable supply. However, it might also qualify as a GST-free supply if it meets certain conditions. Even if it's taxable, the new partnership can claim an offsetting input tax credit for the GST paid on the sale, so it's not a long-term financial loss.
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