A public service body person that is a GST/HST-registrant which acquires real property not primarily in the course of commercial activities is required to report the GST/HST on the GST60 return (for purchase of real property). Is it possible to report the GST/HST in the registrant’s GST/HST Return GST34 for the reporting period that includes the closing date – just like other taxpayers who use the property more than primarily in commercial activities - and offset the self-assessed GST by claiming appropriate ITCs on line 108 or PSB rebates on line 111 of the same Return?
CRA responded:
Pursuant to subsection 228(6), the registrant may offset any tax remittable by the amount of any net tax refund or rebate claimed by that person in another return or application (such as the GST/HST Rebate Application for Public Service Bodies). To apply the offset, the two forms must be filed together. …
Therefore, if a registrant public service body’s PSB rebate claim and GST60 return are due to be filed at the same time, the registrant may offset any tax remittable when the forms are filed together.
With respect to the claiming of ITCs and filing GST60, pursuant to paragraph 169(4)(b), an ITC relating to the purchase of the real property may not be claimed until the GST60 has been filed. As such, subsection 228(6) would generally not be applicable. Any eligible ITCs must be claimed on the registrant’s GST34.
