Why is some testing not charged GST (i.e. not considered a service?
• Testing is normally considered a supply of service. If the service is part of University regular activities, then it would be exempt per legislation mentioned above. However, if the testing service is not a university activity but rather a commercial activity, then the supply is taxable as if it was supplied by a non-unversity entity. In addition, if the supply of service also involved a supply of tangible property, and if the value of the tangible property is greater than the value of service, then the whole supply would be taxable because a supply of tangible property is “excluded” from the exempting provision mentioned above.
