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ATO Interpretative Decision

ATO ID 2001/137

Goods and Services Tax

GST and surgical curette devices
FOI status: may be released

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CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is the entity, a supplier of surgical instruments, making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it sells surgical curette devices?

Decision

No, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it sells surgical curette devices. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts

The entity imports surgical curette devices and sells them to hospitals and medical practitioners.

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

Under subsection 38-45(1) of the GST Act, the supply of certain medical aids and appliances will be GST-free where the medical aid or appliance:

•
is covered by Schedule 3 of the GST Act (Schedule 3), or specified in A New Tax System (Goods and Services Tax) Regulations 1999 (Regulations); and
•
is specifically designed for people with an illness or disability; and
•
is not widely used by people without an illness or disability.

Surgical curette devices are not covered in Schedule 3 nor are they specified in the Regulations. As such, the entity is not making a GST-free supply under subsection 38-45(1) 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 entity is making a taxable supply under section 9-5 of the GST Act.

[Note: The importation of surgical curette devices is a taxable importation under section 13-5 of the GST Act, where the entity imports the items and enters them for home consumption (within the meaning of the Customs Act 1901) and the importation is not a non-taxable importation under Part 3-2 of the GST Act.]

Date of decision:  22 December 2000

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   section 13-5
   Division 38
   subsection 38-45 (1)
   Division 40
   Schedule 3

A New Tax System (Goods and Services Tax) Regulations 1999
   The Regulations

Customs Act 1901
   The Act

Keywords
Goods and Services Tax
GST free
GST health
Medical aids & appliances
Taxable supply

Business Line:  GST

Date of publication:  1 August 2001

ISSN: 1445-2782

history
  Date: Version:
You are here 22 December 2000 Original statement
  24 February 2006 Archived

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