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Edited version of private ruling
Authorisation Number: 1011587232158
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Ruling
Subject: GST and communication aids for hearing impaired people
Question
Are you, making GST-free supplies under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when you supply the communication aids for people with a disability?
Answer
Yes
Relevant facts and circumstances
You are registered for goods and services tax (GST).
You are the supplier of specialist communication aids for people with a disability.
You state that your communication aids are designed and manufactured specifically for people with a disability.
They are not widely used by people without an illness or a disability
There is no agreement between you and the recipient of the supply that the supply will not be treated as a GST-free supply.
Reasons for decision
Summary
You are making GST-free supplies under subsection 38-45(1) of the GST Act, when you supply the communication aids for people with a disability.
Detailed reasoning
Under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), the supply of certain medical aids and appliances will be GST-free where the medical aid or appliance:
· is covered by Schedule 3 to the GST Act (Schedule 3), or specified in the New Tax System (Goods and Services Tax) Regulations 1999 (Regulations)
· is specifically designed for people with an illness or disability, and
· is not widely used by people without an illness or disability.
Communication aids for people with disabilities are listed in Schedule 3 to the GST Act. Your communication aids are listed at Item 14 in the table in Schedule 3 to the GST Act.
In your case, you are providing the communication aids for use by people with a disability.
Furthermore, they are specifically designed for people with a disability and they are not widely used by people without an illness or a disability. Therefore, they satisfy the requirements of subsection 38-45(1) of the GST Act.
As such you are making GST-free supplies under subsection 38-45(1) of the GST Act when you supply the communication products.
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