ATO Interpretative Decision
ATO ID 2002/227 (Withdrawn)
Goods and Services Tax
GST and swimming plugs supplied as part of an audiology serviceFOI status: may be released
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This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original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.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, an audiologist, making a GST-free supply under subsection 38-10(3) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies swimming plugs to a patient during a GST-free health service?
Decision
Yes, the entity is making a GST-free supply under subsection 38-10(3) of the GST Act, when it supplies swimming plugs to a patient during a GST-free health service.
Facts
The entity is an audiologist. The entity is supplying a health service that is GST-free under subsection 38-10(1) of the GST Act.
During the GST-free health service, the entity supplies and fits a patient with swimming plugs. The fitting takes place on the premises. The entity customises the plugs for the treatment of an illness or disability of the patient.
Swimming plugs are not GST-free medical aids or appliances under subsection 38-45(1) of the GST Act.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Subsection 38-10(3) of the GST Act provides that a supply of goods is GST-free if:
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- it is made to the person in the course of supplying to the person a service which is GST-free under subsection 38-10(1) of the GST Act; and
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- it is made at the premises at which the service is supplied.
The swimming plugs are supplied at the premises where the GST-free health service is provided. Therefore, it needs to be determined whether the swimming plugs are supplied in the course of supplying the GST-free health services.
The phrase 'in the course of supplying to the person a service', in the context of subsection 38-10(3) of the GST Act, requires the goods to be supplied at the same point in time at which the GST-free health service is supplied. In addition, the goods must be:
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- customised or manipulated for the exclusive treatment of the illness or disability of the particular patient who is the recipient of the GST-free health service; or
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- necessarily utilised as an integral part of the patient's treatment, required immediately during that specific consultation.
The swimming plugs are supplied at the same point in time at which the GST-free health service is supplied, and are customised for the exclusive treatment of the illness or disability of the particular patient receiving the GST-free audiology service.
Accordingly, the swimming plugs are supplied 'in the course of supplying' a GST-free health service.
Therefore, as the supply of swimming plugs is made 'in the course of supplying' the GST-free health service, it satisfies the requirements in subsection 38-10(3) of the GST Act. As such, the entity is making a GST-free supply under subsection 38-10(3) of the GST Act, when it supplies swimming plugs to a patient during a GST-free health service.
Date of decision: 25 June 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-10(1)
subsection 38-10(3)
subsection 38-45(1)
ATO ID 2002/226
ATO ID 2002/228
ATO ID 2002/229
Keywords
Goods & services tax
GST-free
GST health
Section 38-10 - other health services
ISSN: 1445-2782
| Date: | Version: | |
| 25 June 2001 | Original statement | |
| You are here | 22 June 2007 | Archived |