Can GST be charged on subsidised course fees instead?
Recently, I registered for a SkillsFuture Credit course on personal data protection. The original course fee was $720, but after all the subsidies and the senior citizens' discount, the course fee was only $72. However I was charged $72 plus $50.40 (7 per cent goods and services tax on the full course fee of $720), making the total $122.40. Whenever I visit Singapore General Hospital outpatient clinics, my bill would clearly show the consultation fee of $97. After the government subsidies and additional Pioneer Generation discount, the amount payable before tax is $19.40. The GST is chargeable on only the fee of $19.40 after subsidies, and not $97. Another example is buying items at a supermarket. One tin of baby milk powder might normally cost $50. But during a one-for-one promotion, I would pay $50 for two tins. I would not be asked to pay the GST for the second tin of milk powder. After all, education is for self-improvement and benefits the country, too. Lim Ing Yew