ATO ID 2001/199: GST and food for students on field trips
Date of decision: 31 October 2000
Business line: Indirect Tax

Issue
Is the entity, an organisation that supplies an outdoor education field trip to students, making a GST-free supply under Division 38 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies food to students in the course of that field trip?

Decision
No, the entity is not making a GST-free supply under Division 38 of the GST Act when it supplies food to students in the course of an outdoor education field trip. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts
The entity is an organisation that supplies an outdoor education field trip to students as part of the students' curriculum. During the course of the field trip, students camp in the bush. At the campsite, the entity supplies the students with food that is also consumed at the campsite. The food provided includes food such as fresh fruit, salami, sliced ham and fresh bread. On most occasions, students prepare the food themselves; but at times, the camp staff prepares a hot meal for the students. The entity is registered for goods and services tax (GST). The supply meets the other positive limbs of section 9-5 of the GST Act.

Reasons for decision
Summary: Paragraph 38-90(2)(b) of the GST Act provides that any supply of food as part of an excursion or field trip is not GST-free under section 38-90 of the GST Act. However, the supply of food to students in the course of a field trip may be GST-free under the food provisions contained in Subdivision 38-A of the GST Act. Under section 38-2 of the GST Act, a supply of 'food' is GST-free provided that it does not come within any of the exclusions in section 38-3 of the GST Act. 'Food' is defined in paragraph 38-4(1)(a) of the GST Act to include 'food for human consumption (whether or not requiring processing or treatment)'. In this case, the food supplied to the students is food for human consumption. However, a supply of food is not GST-free if it is 'food for consumption on the premises from which it is supplied' (paragraph 38-3(1)(a) of the GST Act). 'Premises' is defined in section 38-5 of GST Act and in Goods and Services Tax Determination GSTD 2000/4 to include: • the place where the supply takes place; or • the grounds surrounding a café or public house, or other outlet for the supply; or • the whole of any enclosed space such as a football ground, garden, showground, amusement park or similar area where there is a clear boundary or limit. In this case, food is supplied to the students at the campsite, for their consumption at the campsite. Therefore, the food is being supplied for consumption at 'the place where the supply takes place'. As such, the campsite is considered to be 'premises' for the purposes of paragraph 38-5(a) of the GST Act. Therefore, the supply is a supply of 'food for consumption on the premises from which it is supplied'. Accordingly, the entity is not making a GST-free supply under section 38-2 of the GST Act. The entity is registered for GST and the supply meets the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the supply will be a taxable supply under section 9-5 of the GST Act.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 Division 38 Subdivision 38-A section 38-2 section 38-3 paragraph 38-3(1)(a) paragraph 38-4(1)(a) section 38-5 paragraph 38-5(a) section 38-90 paragraph 38-90(2)(b) Division 40
Related public rulings and determinations: Goods and Services Tax Determination GSTD 2000/4
Subject references: Goods and Services Tax GST free GST education Education excursions GST food