ATO Interpretative Decision
ATO ID 2001/782 (Withdrawn)
Goods and Services Tax
GST and supply of bandages during a GST-free physiotherapy serviceFOI status: may be released
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This ATO ID is withdrawn as the interpretative issue is covered in the GST Fact Sheet - GST and other health servicesThis document incorporates revisions made since original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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 registered physiotherapist, 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 a bandage that is applied to a patient during the provision of a GST-free physiotherapy service?
Decision
Yes, the entity is making a GST-free supply under subsection 38-10(3) of the GST Act, when it supplies a bandage that is applied to a patient during the provision of a GST-free physiotherapy service.
Facts
The entity is a physiotherapist who is registered under a relevant State Act. The entity supplies a physiotherapy service that is GST-free under subsection 38-10(1) of the GST Act.
During the GST-free physiotherapy service, the entity also supplies the patient with a bandage that is applied to that patient during the consultation. The supply and application of the bandage is an integral part of the patient's treatment required immediately during that specific consultation.
The supply of the bandage is not GST-free 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 a person in the course of supplying to the person a service which is GST-free under subsection 38-10(1) of the GST Act (other than supplies of herbal medicine, naturopathy, optometry and pharmacy); and
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- it is made at the premises at which the service is supplied.
In this case, the supply of the bandage is made at the premises at which the GST-free physiotherapy service is supplied. This is because it is supplied and applied to the patient during the provision of GST-free physiotherapy consultation. Therefore, it must be determined whether the bandage is supplied in the course of supplying the GST-free physiotherapy service.
It is considered that for goods to be supplied 'in the course of supplying' a GST-free service to a person, in the context of subsection 38-10(3) of the GST Act, the goods must be supplied at the same point in time at which the GST-free physiotherapy services are 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 physiotherapy service; or
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- necessarily utilised as an integral part of the patient's treatment required immediately during that specific consultation.
In this case, the bandage is supplied to the patient at the same point in time at which the GST-free physiotherapy service is supplied. It is necessarily utilised as an integral part of the patient's treatment required immediately during that specific consultation. Therefore, the supply of the bandage is made 'in the course of supplying' the GST-free physiotherapy service.
Accordingly, the entity is making a GST-free supply under subsection 38-10(3) of the GST Act when it supplies a bandage that is applied to a patient during the provision of a GST-free physiotherapy service.
Date of decision: 03 July 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)
Keywords
Goods & services tax
GST free
GST health
Section 38-10 - other health services
ISSN: 1445-2782
| Date: | Version: | |
| 3 July 2001 | Original statement | |
| You are here | 22 June 2007 | Archived |