ATO Interpretative Decision
ATO ID 2001/265 (Withdrawn)
Goods and Services Tax
GST and Diabetes management productsFOI status: may be released
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This ATO ID is withdrawn as it is a simple restatement of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, a supplier of medical aids and appliances, 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 diabetes management products?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it sells diabetes management products.
Facts
The entity is a supplier of medical aids and appliances. In this case, the entity is selling diabetes management products. Specifically, the entity is selling finger prickers; alcohol skin wipes; test strips; needles and syringes; and glucose monitors.
The diabetes management products are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability.
There is no agreement between the entity and the recipient that the supply will not be treated as a GST-free supply.
The entity is registered for goods and services tax (GST).
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:
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- 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 (Regulations); and
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- is specifically designed for people with an illness or disability; and
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- is not widely used by people without an illness or disability.
Diabetes management products listed in Schedule 3 are:
| finger prickers | item 34 |
| alcohol skin wipes | item 35 |
| test strips | item 36 |
| needles and syringes | item 37 |
| glucose monitors | item 38 |
In this case, the entity is supplying diabetes management products that are covered by Schedule 3. Furthermore, the diabetes management products are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it sells diabetes management products.
Date of decision: 26 July 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-45(1)
Schedule 3
Schedule 3 table item 34
Schedule 3 table item 35
Schedule 3 table item 36
Schedule 3 table item 37
Schedule 3 table item 38
the Regulations
Keywords
Goods & services tax
GST-free
GST health
Medical aids & appliances
ISSN: 1445-2782
| Date: | Version: | |
| 26 July 2001 | Original statement | |
| You are here | 24 November 2006 | Archived |