ATO Interpretative Decision
ATO ID 2004/124 (Withdrawn)
Goods and Services Tax
GST and supply of administrative services to the provider of an education courseFOI status: may be released
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This ATO ID is withdrawn on the basis that it is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 10 February 2006
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a government department, making a GST-free supply of administrative services under paragraph 38-85(b) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a service to government schools that consists of marketing courses to overseas students, and administering the enrolment of the overseas students?
Decision
No, the entity is not making a GST-free supply of administrative services under paragraph 38-85(b) of the GST Act when it supplies a service to government schools that consists of marketing courses to overseas students and administering the enrolment of the overseas students.
The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a government department. The entity supplies administrative services to government schools. These services consist of marketing courses to overseas students and administering the enrolment of those students.
The courses that the government schools provide fall within the definition of 'education course' under section 195-1 of the GST Act and the supply of these courses is GST-free under paragraph 38-85(a) of the GST Act.
The entity is registered for goods and services (GST) and the supply satisfies the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
Paragraph 38-85(b) of the GST Act provides that a supply of administrative services directly related to the supply of a GST-free education course is GST-free if it is supplied by the supplier of the course.
The entity is supplying administrative services that relate to the supply of a GST-free education course. However, the supply of the GST-free education course is made by the government schools, not the entity. As such, the entity's supply is not GST-free under paragraph 38-85(b) of the GST Act.
The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is not GST-free under any other provision in Division 38 of the GST Act, nor is it input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies a service to government schools that consists of marketing courses to overseas students and administering the enrolment of the overseas students.
Date of decision: 6 March 2003
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
Division 38
paragraph 38-85(a)
paragraph 38-85(b)
Division 40
section 195-1
Keywords
Goods and services tax
GST free
GST education
Education course administrative services
Education courses
GST supplies & acquisitions
GST supply
Taxable supply
ISSN: 1445-2782
| Date: | Version: | |
| 6 March 2003 | Original statement | |
| You are here → | 10 February 2006 | Archived |