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Edited version of your written advice
Authorisation Number: 1013078042700
Date of advice: 26 August 2016
Ruling
Subject: GST and medical appliances
Question
Are you 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 you supply products designed for people with an illness or disability:
Answer
Yes, you are making a GST-free supply under subsection 38-45(1) of the GST Act when you supply products which are designed for people with an illness or disability.
Relevant facts and circumstances
You are registered for GST.
You supply medical appliances that are designed for people with an illness or disability.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1)
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 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.
Your products are covered by Schedule 3 to the GST Act, are specifically designed for people with an illness or disability; and are not widely used by people without an illness or disability.
Accordingly, the supply of your products satisfies the requirements in subsection 38-45(1) of the GST Act and will be GST-free.
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