ATO Interpretative Decision

ATO ID 2001/649 (Withdrawn)

Goods and Services Tax

• This GST ATO ID is withdrawn on the basis that it is a straight application of the law and does not contain an interpretative decision
  This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Issue

Is the entity, an importer of medical aids and appliances, making a taxable importation under section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it imports a braille labeller?

Decision

No, the entity is not making a taxable importation under section 13-5 of the GST Act, when it imports a braille labeller. The entity is making a non-taxable importation as defined under section 13-10 of the GST Act.

Facts

The entity is an importer of medical aids and appliances. The entity imports a braille labeller for home consumption (within the meaning of the Customs Act 1901).

The braille labeller prints braille. The braille labeller is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.

The importation of the braille labeller is not a non-taxable importation under Part 3-2 of the GST Act.

The entity is not registered or required to be registered for goods and services tax (GST).

Reasons for Decision

Under section 13-5 of the GST Act, an entity makes a taxable importation if:

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it imports goods; and

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the goods are entered for home consumption within the meaning of the Customs Act 1901.

However, an importation is not a taxable importation to the extent that it is a non-taxable importation.

Under section 13-10 of the GST Act, an importation is a non-taxable importation if it is a non-taxable importation under Part 3-2 of the GST Act, or if it would have been a supply that was GST-free or input taxed if it had been a supply made in Australia.

The entity imports the braille labeller for home consumption (within the meaning of the Customs Act 1901). The importation of the braille labeller is not a non-taxable importation under Part 3-2 of the GST Act. Therefore, it is necessary to determine whether the supply of the braille labeller to the entity would have been GST-free or input taxed had it been a supply made in Australia.

Subsection 38-45(1) of the GST Act provides that a supply of a medical aid or appliance is GST-free if:

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it is covered by Schedule 3 to the GST Act (Schedule 3) or specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations); and

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it is specifically designed for people with an illness or disability; and

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it is not widely used by people without an illness or disability.

Item 148 in the table in Schedule 3 (Item 148) lists 'braille printers and paper'. Printers which print words, pictures or symbols in braille, are covered by this item.

As the braille labeller in the present case prints braille, it is covered by item 148. In addition, the braille labeller is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability. Therefore, the supply of the braille labeller to the entity would have been GST-free had it been a supply made in Australia. Accordingly, the entity is making a non-taxable importation under section 13-10 of the GST Act.

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 13-5
   section 13-10
   subsection 38-45(1)
   Schedule 3
   Schedule 3 table item 148

Keywords
Goods & services tax
GST free
GST health
38-45 medical aids & appliances
Imports
Non taxable importations
Taxable importations

Business Line:  GST

Date of publication:  29 November 2001

ISSN: 1445-2782