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Edited version of your written advice
Authorisation Number: 1051311316987
Date of advice: 29 November 2017
Ruling
Subject: GST and medical appliances
Question 1
Is the supply of your medical aids and appliances GST-free?
Answer
Yes.
This ruling applies for the following periods:
NA
The scheme commences on:
NA
Relevant facts and circumstances
You have an Australian Business Number and are registered for GST.
You supply medical aids and appliances.
Your medical aids and appliances are designed specifically for people with an illness or disability.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) & (3)
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.
On the basis of the information supplied the above named products are specifically designed for use by people with an illness or disability and are not widely used by people without an illness or disability.
Your products are also covered by:
● Item xx of Schedule 3 of the GST Act ; and
● Item xx of Schedule 3 of the GST Act.
Therefore supplies of your medical aids or appliances will be GST-free.
However, a supply is not GST-free if the supplier and the recipient have agreed that the supply or supplies of a kind that include that supply, not be treated as GST-free supplies (subsection 38-45(3) of the GST Act).
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