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Edited version of private ruling
Authorisation Number: 1011830294120
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Ruling
Subject: GST and medical aids and appliances
Question
Is your supply of certain medical aids and appliances (and associated replacement parts) either by sale or hire GST-free?
Answer
Those medical aids and appliances satisfying the requirements of subsection 38-45(1) of the A New Tax System (Goods and services Tax) Act 1999 (GST Act) will be GST-free when sold or hired.
Relevant facts and circumstances
· You are registered for GST.
· You are to supply medical aids and appliances.
· You do not have an agreement with your customer that the supply of the medical aids and appliances will not be GST-free.
Relevant legislative provisions
GST Act
Section 38-45 with reference to Schedule 3.
A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)
Schedule 3.
Reasons for decision
Summary
Those medical aids and appliances satisfying the requirements of subsection 38-45(1) of the GST Act will be GST-free when sold or hired.
Detailed reasoning
Subsection 38-45(1) of the GST Act provides that a supply of a medical aid or appliance is GST-free where it is:
· covered by an item listed in Schedule 3 to the GST Act or in Schedule 3 to the GST Regulations
· specifically designed for people with an illness or disability, and
· not widely used by people without an illness or disability.
Your medical aids and appliances meet the requirements of section 38-45 of the GST Act. Consequently, your supply of the medical aid or appliance will be GST-free.
Hire of equipment
The GST Act does not stipulate that the medical aid or appliance must be purchased for it to be GST-free. Hence, any medical aid or appliance that is GST-free when sold is also GST-free when hired.
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