GST and supply of administrative services to the provider of an education course

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?

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.

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.

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.