ATO Interpretative Decision
ATO ID 2002/535
Goods and Services Tax
GST and supply of a toilet support railFOI status: may be released
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 bathroom accessories, 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 supplies a toilet support rail?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies the toilet support rail.
Facts
The entity is a supplier of bathroom accessories. The entity supplies a toilet support rail.
The toilet support rail is a grab rail that is specifically designed and manufactured for use in disabled toilets and is not used for any other applications. The grab rail can support the weight of a disabled person.
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, a supply of a medical aid and appliance is GST-free if:
- •
- it is covered by Schedule 3 to the GST Act (Schedule 3) or specified in the A New Tax System (Goods and Services Tax) Regulations 2019(Regulations);
- •
- it is specifically designed for people with an illness or disability; and
- •
- it is not widely used by people without an illness or disability.
Item 121 in the table in Schedule 3 (Item 121) lists 'toilet supports'. A toilet support is an aid or appliance that has design characteristics such that it assists a disabled person when they are using a toilet. In addition, generally it must be able to support the weight of the disabled person.
A toilet grab rail may possess the characteristics of a toilet support and be identifiable as a toilet support either at the point of manufacture or, in the case of a generic grab rail, at the point of installation in a toilet area. A toilet grab rail is covered by Item 121 if it has the characteristics of and is identifiable as being a toilet support when it is supplied.
In this case, the toilet support rail assists a disabled person to use the toilet and it can support the weight of a disabled person. The grab rail is designed and manufactured solely to be used in disabled toilets and has design characteristics that make it identifiable as a toilet support from the point of manufacture. As such, the toilet support rail is a toilet support and is covered by Item 121.
In addition, as the toilet support rail is specifically designed for use in disabled toilets and is not used for any other applications, the toilet support rail is specifically designed for people with an illness or disability and is 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 supplies the toilet grab rail.
Amendment History
| Date of Amendment | Part | Comment |
|---|---|---|
| 9 April 2019 | Throughout | Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019. |
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-45(1)
Schedule 3
Schedule 3 table item 121
The Regulations
Keywords
Goods & services tax
GST free
GST health
Section 38-45 - medical aids & appliances
ISSN: 1445-2782