Private ruling: GST and supply of assessment services
Date of advice: 17 December 2021
Published: March 2022
Ruling period: 1 December 20XX till quarter ending 31 December 20XX
Date scheme commenced: 31 January 20XX

Ruling: Q1: Is the supply by the entity (the RTO) to Entity X of the Assessment Services under the relevant Deeds a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No. As the entity, a Recognised Training Organisation is an entity listed in subsection 38-110(2) and the Assessment Services are undertaken on an individual (Applicant) for the purposes of one of the reasons in subsection 38-110(1) the requirements of section 38-110 are met. Consequently, the supply of the Assessment Services by the RTO to Entity X are not a taxable supply as they are considered GST-free.

Relevant facts and circumstances: Entity X is an authority of the Commonwealth or of a State or Territory. Entity X is required to make assessments of a person's (Applicants) qualifications. The purpose of the assessments is for the Applicants to gain employment in the Indirect Tax Zone. Entity X engages an entity (the RTO) which is a recognised training organisation to carry out the assessment. The RTO carries out the assessment under the terms of the relevant Deeds. The Deeds provide that the RTO will provide the Assessment Services to Entity X in consideration for a fee payable by Entity X. The Entity X and the RTO are registered for goods and services tax (GST).

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 9-5 | A New Tax System (Goods and Services Tax) Act 1999 38-110(1) | A New Tax System (Goods and Services Tax) Act 1999 38-110(2)