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ATO Interpretative Decision

ATO ID 2002/162 (Withdrawn)

Goods and Services Tax

GST and medical aids & appliances not covered by an item in the table in Schedule 3 or specified in the GST Regulations
FOI status: may be released
  • This ATO ID 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.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 a medical aid or appliance that is not covered by an item in the table in Schedule 3 to the GST Act (Schedule 3) or specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)?

Decision

No, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it sells a medical aid or appliance that is not covered by an item in the table in Schedule 3 or specified in the GST Regulations.

Facts

The entity is a supplier of medical aids and appliances. The medical aids and appliances are not covered by an item in the table in Schedule 3 or specified in the GST Regulations.

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 a medical aid or appliance is GST-free where the medical aid or appliance:

•
is covered by an item in the table in Schedule 3 or specified in the GST Regulations;
•
is specifically designed for people with an illness or disability; and
•
is not widely used by people without an illness or disability.

The entity is supplying medical aids and appliances that are not covered by an item in the table in Schedule 3 or specified in the GST Regulations. Therefore, the entity is not making a GST-free supply of the medical aids and appliances under subsection 38-45(1) of the GST Act.

Date of decision:  13 March 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   subsection 38-45(1)
   Schedule 3

A New Tax System (Goods and Services Tax) Regulations 1999
   the Regulations

Keywords
Goods & services tax
GST-free
GST health
Medical aids & appliances
Taxable supply

Business Line:  GST

Date of publication:  22 February 2002

ISSN: 1445-2782

history
  Date: Version:
  13 March 2001 Original statement
You are here 30 September 2005 Archived

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