20 November 1998 GST/HST Interpretation HQR0001334 - Sales of Roof Trusses to Indians

Dear XXXXX

Thank you for your letter of July 14, 1998, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the sales of roof trusses by XXXXX to Indians.

On April 1, 1997, the GST and the provincial sales tax in the three participating provinces of Nova Scotia, New Brunswick and Newfoundland were replaced with a harmonized tax rate of 15 % that is based on the operating rules of the GST. Accordingly, businesses from all regions of Canada are required to collect the 15% HST on supplies made in a participating province, unless a relieving provision applies. However, since your business is situated XXXXX (a non-participating province), this letter will address the application of the GST alone.

Interpretation Requested

You wish to know if the GST is applicable to the on reserve sales of roof trusses by XXXXX to Indians when delivery of goods is to sites other than on a reserve?

Interpretation Given

Based on the facts set out above, sales of roof trusses by XXXXX to Indians when sold on reserve but delivered off reserve are relieved of GST.

Vendors must maintain adequate evidence that the supply for which no GST was payable was made to an Indian, as registered under the Indian Act. The Department will accept as adequate evidence a notation on the invoicesales document (which is retained by the vendor) of the registry number found on the Indian's Certificate of Indian Status Card.

GST Technical Information Bulletin B-039R, GST Administrative Policy, Application of GST to Indians, which we have enclosed for your reference, summarizes Revenue Canada's policy concerning the treatment of Indian purchases under the GST.

The foregoing comments represent our general views with respect to the subject matter of you letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the Department with respect to a particular situation.

For your convenience, find enclosed a copy of section 1.4 of Chapter 1 of the GST/HST Memoranda Series.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 957-1175.

Yours truly,

Don Gagnon
Educational Services and Indians Unit
Public Services Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate

Explanation

The treatment of Indian purchases under the GST will be consistent with the Indian Act under which personal property of an Indian or an Indian band situated on a reserve, and their interests in reserves or designated lands, is not subject to tax. Goods purchased by Indians on reserve or delivered to the reserve by the vendor or the vendor's agent will not be subject to tax. For those sales relieved of the GST the vendor must maintain adequate documentation or evidence that the sale was eligible for relief. Sales to individual Indians require that a vendor note on their copy of the sales invoice or other sales document the nine or ten digit registry number, often referred to as the band number, from the Individual's Certificate of Indian Status card.