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Goods and Services Tax/Harmonized Sales Tax (GST/HST) Credit

August 2001

New time limits for Indians and Indian bands* making goods and services tax/harmonized sales tax (GST/HST) general rebate claims

*"Indians" and "Indian Bands" as defined in the Indian Act.

Under the Indian Act, the personal property of an Indian or an Indian band situated on a reserve is exempt from taxation. Consistent with this exemption, GST/HST does not apply to on-reserve purchases of goods by Indians and Indian bands, or to off-reserve purchases by Indians and Indian bands of goods delivered to the reserve by vendors or their agents. In addition, the GST/HST does not apply to services where the services are performed totally on-reserve.

However, there are some instances where GST/HST may have been paid, either correctly or incorrectly, and the Indian person or Indian band is entitled to have the GST/HST refunded under the general rebate program. This notice applies to these general rebate claims.

Effective January 1, 2002, GST/HST rebate claims made by Indians and Indian bands must be filed with the Canada Customs and Revenue Agency (CCRA) within two years of when the tax was paid. Indian bands and Indians who have claims on purchases from more than two years ago have to file those claims by December 31, 2001.

The change is a result of a CCRA review of the Excise Tax Act. The review determined that time limits for rebate applications apply to claims filed by Indians and Indian bands. As a result, the practice of allowing unlimited time to file rebates will end January 1, 2002.

Generally, Indian bands and Indians can apply for a GST/HST rebate if the tax was paid for a product and it was acquired on a reserve or delivered to a reserve by the vendor. For band-management activities, GST/HST paid on off-reserve purchases of services, transportation, accommodation, meals, and entertainment is eligible for a rebate.

For more details on the CCRA's policy, including exceptions and special circumstances, please see GST/HST Technical Information Bulletin B-039R, GST Administrative Policy, Application of GST to Indians.

Any claims for rebates on GST/HST payments made before January 1, 2000, have to be filed by December 31, 2001.

Examples of circumstances where GST/HST rebates are paid to Indians and Indian bands:

• An Indian, living on a reserve, has paid GST/HST on his hydro bill. He can claim a GST/HST rebate. He does this by filing a completed Form GST 189. He also has to provide proper documentation to support the claim.
• An Indian bought a sofa from Acme Furniture in Littletown. Acme Furniture delivered the sofa to the reserve, but insisted that the customer pay GST/HST. She can claim a rebate for GST/HST she paid by filing a completed Form GST 189, and providing proper documentation to support the claim.
• An Indian works for a band and had to go to a meeting off the reserve to discuss band management activities. His employer, the band, reimbursed him for his travel-related expenses. The band can get a GST/HST rebate on the travel expenses that they paid for (e.g., plane ticket, meals, and taxis), if the band manager files a completed Form GST 189 with the proper documentation to support the claim.

For instructions, please see the CCRA publication called GST/HST General Rebate Application Guide.

For more information, contact a CCRA tax services office, call 1-800-959-5525, or visit the CCRA Web site at: www.cra.gc.ca

For a GST/HST General Rebate Application guide, you can go to: www.cra-arc.gc.ca/menu/GTGD-e.html

To view the Technical Information Bulletin TIB B-039R, GST Administrative Policy Application of GST to Indians, go to: www.cra-arc.gc.ca/menu/GTIB_01-e.html

In Quebec, the ministère du Revenu du Québec administers GST for the CCRA. For more information, contact an office of the ministère du Revenu du Québec, or call 1-800-567-4692.

Note:
In the examples, proper documentation includes items such as:

• a statement of the reason the tax should not have been paid;
• a statement detailing how the claim was calculated;
• original receipts for all purchases; and
• individuals making claims also have to give their Indian registration number.

For media information, contact:
Colette Gentes-Hawn
(613) 957-3522

For media information

Date modified:

2001-08-20