what Goods and services tax – GST treatment of partnership capital contributions?

whether a GST registered partnership is required to account for output tax on a capital contribution made by a partner. It concludes that the partnership is not required to account for output tax because the partnership does not make a supply. Where a partnership capital contribution is made in return for the transfer of an existing partnership interest, it is concluded that the supply of the partnership interest is made by the existing partner. It is not made by the partnership. Where the capital contribution is not made in return for the transfer of an existing partnership interest, for example on the initial creation of a partnership, it is concluded that no supply is made and, therefore, no GST can be charged.