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Edited version of your written advice

Authorisation Number: 1051255439421

Date of advice: 24 July 2017

Ruling

Subject: GST medical aids and appliances

Question

Is the supply of your medical aid GST-free?

Answer

No. The supply of your medical aid is not GST-free.

Relevant facts and circumstances

You are introducing a medical aid and appliance in the market.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 38-45.

Reasons for decision

Under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), the supply of a medical aid and appliance is GST-free where the medical aid or appliance:

    ● 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 (GST Regulations);

    ● is specifically designed for people with an illness or disability; and

    ● is not widely used by people without an illness or disability.

Medical aids and appliances that satisfy all these conditions are GST-Free at every point in the supply chain - from manufacture to consumer.

Your medical aid and appliance is not covered in Schedule 3 nor is it specified in the Regulations to the GST Act. Therefore, a supply of your medical aid and appliance, in itself, does not satisfy the requirement in subsection 38-45(1) of the GST Act.