ATO Interpretative Decision
ATO ID 2001/125 (Withdrawn)
Goods and Services Tax
GST and supply of tubal reversal servicesFOI 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This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original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.
Status of this decision: Decision Withdrawn 4 May 2007
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 medical practitioner, making a GST-free supply under subsection 38-7(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it provides tubal reversal services to a patient?
Decision
Yes, the entity is making a GST-free supply under subsection 38-7(1) of the GST Act when it provides tubal reversal services to a patient.
Facts
The entity, a medical practitioner (as defined in section 195-1 of the GST Act), provides tubal reversal services to a patient, for which no medicare benefit is payable. The entity is registered for goods and services tax.
The services are not rendered in prescribed circumstances within the meaning of regulation 14 of the Health Insurance Regulations made under the Health Insurance Act 1973 or for cosmetic reasons.
In this case, these services are generally accepted in the medical profession as necessary for the appropriate treatment of the patient.
Reasons For Decision
A supply of a medical service is GST-free under subsection 38-7(1) of the GST Act.
A 'medical service' is defined under section 195-1 of the GST Act to mean:
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- a service for which a medicare benefit is payable under Part II of the Health Insurance Act 1973; or
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- any other service supplied by or on behalf of a medical practitioner or approved pathology practitioner that is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply.
In this case, there is no medicare benefit payable for the service provided by the entity. However, as the supply of tubal reversal services to the patient in this case is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply, the supply meets the definition of a medical service under section 195 of the GST Act.
Therefore, as the medical service is not excluded under subsection 38-7(2) of the GST Act, the entity is making a GST-free supply of tubal reversal services to its patient under subsection 38-7(1) of the GST Act.
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-7(1)
subsection 38-7(2)
section 195-1
Health Insurance Act 1973 Health Insurance Regulations 1975
Regulation 14
Keywords
Goods & services tax
GST free
GST health
GST other health goods
GST other health services
ISSN: 1445-2782
| Date: | Version: | |
| 7 August 2000 | Original statement | |
| You are here → | 4 May 2007 | Archived |