ATO Interpretative Decision

ATO ID 2002/228 (Withdrawn)

Goods and Services Tax

GST and noise attenuation plugs
FOI status: may be released

This ATO ID is withdrawn as it is a simple restatement of the law and does not contain an interpretative decision.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.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 supplies noise attenuation plugs?

Decision

No, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies noise attenuation plugs. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts

The entity is a supplier of medical aids and appliances. The entity supplies noise attenuation plugs.

The entity is registered for the goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.

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 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.

Noise attenuation plugs are not covered by Schedule 3 or listed in the GST Regulations. Therefore, the supply of noise attenuation plugs is not GST-free under subsection 38-45(1) of the GST Act.

The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under any other provisions of Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies noise attenuation plugs.

Date of decision: 25 June 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   Division 38
   subsection 38-45 (1)
   Division 40
   Schedule 3

A New Tax System (Goods and Services Tax) Regulations 1999
1

Related ATO Interpretative Decisions
ATO ID 2002/226
ATO ID 2002/227
ATO ID 2002/229

Keywords
Goods and Services Tax
GST-free
GST health
Section 38-45 medical aids & appliances
Taxable supply

Business Line: GST

Date of publication: 8 March 2002

ISSN: 1445-2782

history

	Date:	Version:
	25 June 2001	Original statement
You are here	24 November 2006	Archived

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