Issue
Is an entity, a supplier of education courses, making a GST-free supply under section 38-85 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies an education course, as defined in section 195-1 of the GST Act, to a student who is repeating the course?
Decision
Yes, the entity is making a GST-free supply under section 38-85 of the GST Act when it supplies an education course, as defined in section 195-1 of the GST Act, to a student who is repeating the course.
Facts
The entity is a supplier of education courses. The education course satisfies the definition of 'education course' in section 195-1 of the GST Act. The entity is supplying the course to a student who is repeating the course.
The entity is registered for goods and services tax (GST).
Reasons for Decision
The supply of an 'education course' is GST-free under section 38-85 of the GST Act. 'Education course' is defined in section 195-1 of the GST Act and includes a number of different types of courses which are also defined in section 195-1 of the GST Act. The definition of each type of course hinges on the nature of the course rather than the motive for undertaking the course.
The GST legislation does not require the motives or reasons of the student undertaking the course to be taken into account when determining whether the supply of an education course is GST-free under section 38-85 of the GST Act.
Where an education course meets the definition in section 195-1 of the GST Act its supply is GST-free: • regardless of the motives or reasons of the student, or • irrespective of whether the student is participating in that course for the first or a subsequent time.
Therefore, the entity is making a GST-free supply under section 38-85 of the GST Act when it supplies an education course, as defined in section 195-1 of the GST Act, to a student who is repeating that course.