6 June 2002 GST/HST Interpretation 39318 - Due Date for Submitting FNT Schedule

Dear XXXXX:

Thank you for your letters of XXXXX and XXXXX, concerning the completion of a GST 499 First Nations Tax (FNT) Schedule ("FNT schedule").

A registrant selling FNT products from a location on reserve where the FNT applies is required to complete the FNT schedule in addition to the registrant's GST return and if applicable a GST/HST general rebate.

Interpretation Requested

What is the time limit for making an adjustment to the FNT schedule where there has been an over remittance of an amount as net tax?

Interpretation Given

In order to recapture an amount as GST which was over-remitted by a supplier but not charged to or collected from another person, the process is not to adjust a regular GST return. Section 261 of the ETA provides that where a person pays or remits an amount as net tax that is later found not to be payable or remittable, the person may claim a rebate of that amount. The rebate form used is the "General Application for Rebate of GST/HST" - GST 189. The rebate reason would be GST paid in error.

The requirement for filing a GST /HST general rebate is two years per subsection 261(3) of the ETA.

The foregoing comments represent our general views with respect to the subject matter of your 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 Canada Customs and Revenue Agency 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) 952-9264.

Yours truly,

Cindy Christmas
Aboriginal Affairs Unit
Public Service Bodies and Government Division
Excise and GST/HST Rulings Directorate

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