- The case dealt with the issue of whether input tax credits were available for certain acquisitions made under the GST Act.
- The court decided that commissions paid to a third party in relation to distribution and administration agreements were not creditable acquisitions, while overheads were creditable to the extent that they related to GST-free supplies.
- The court also held that the apportionment methodology proposed by the taxpayer was fair and reasonable.
- The decision was based on the real and substantial relationship between the acquisitions and the input taxed supplies, and whether there was a connection between the acquisitions and the making of a taxable or GST-free supply.
Source KPMG
