Whether GST is chargeable on the full (gross) or subsidized (net) value of the services depends on whom the subsidies/grants are awarded to (i.e. the GST-registered supplier or customer).
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Subsidy for childcare services
Whether GST is chargeable on the full or subsidized child care fees depends on whether the subsidy is awarded to the parent/child or to the GST registered child care operator.
Subsidy is awarded to the child care operator
If the subsidy is awarded to the GST registered child care operator so that it can charge a lower fee for its services, GST is chargeable on the subsidized fees (i.e. net child care fees payable after deducting the subsidies).Subsidy is awarded to the eligible parent/child
If the subsidy is awarded to the eligible parent/child to help defray the cost of child care fees, the GST registered child care operator should charge and account for GST on the full child care fee before deducting the subsidy, as that is the value of its service. This is notwithstanding that the subsidies may be credited to the child care operator directly.
Subsidy/grant for training services
Whether GST is charged on the gross or subsidised training fees depends on whether the subsidy/grant is awarded to the eligible customer (i.e. trainee) or the GST registered training provider.
Subsidy/grant is awarded to the training provider
If the subsidy/ grant is awarded to the GST registered training provider so that it can charge the course fee at a subsidised rate, GST is chargeable on the subsidised training fees (i.e. net fees payable after deducting the subsidies).Subsidy/grant is awarded to the eligible trainee
If the subsidy/grant is awarded to the trainee to help defray the cost of training fees, the GST registered training provider should charge and account for GST on the gross training fees before deducting the subsidies. This is notwithstanding that the subsidies/grants may be credited to the training provider directly.