ATO Interpretative Decision
ATO ID 2002/25
Goods and Services Tax
GST and slide sheetsFOI status: may be released
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 a slide sheet set?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act, when it supplies a slide sheet set.
Facts
The entity is a supplier of medical aids and appliances. The entity supplies slide sheet sets to hospitals. The slide sheet set is used to manoeuvre patients on their own beds in the course of their hospital care. The slide sheet set consists of two slide sheets. These sheets are constructed of specialised fabric with low friction inner surfaces that glide over themselves during a patient transfer.
The slide sheets cannot be washed in the same way as ordinary sheets. The slide sheet set is specifically designed for people with an illness or disability and is not widely used by people without an illness or disability.
There is no agreement between the entity and the hospital (recipient of the supply) that the supply will not be treated as a GST-free supply.
The entity is registered for goods and services tax (GST).
Reasons for Decision
Under subsection 38-45(1) of the GST Act, the supply of a medical aid and appliance is GST-free where the medical aid or appliance:
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- is covered by Schedule 3 to the GST Act, or specified in the A New Tax System (Goods and Services Tax) Regulations 2019(GST Regulations);
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- is specifically designed for people with an illness or disability; and
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- is not widely used by people without an illness or disability.
Item 92 in the table in Schedule 3 to the GST Act (Item 92) lists transfer sheets, mats and belts. As such, it is necessary to determine whether the slide sheet set falls within the scope of transfer sheets.
The term 'transfer sheets' is not defined in the GST Act. Generally, where a term is not defined in the relevant Act, it is usually interpreted in accordance with its ordinary meaning, unless it has a special or technical meaning. Where a term has a special or technical meaning, it is necessary to determine its meaning by reference to the industry to which that term relates (Herbert Adams Pty Ltd v FCT (1932) 47 CLR 222).
It is considered that transfer sheets are sheets that may be used to assist in the transfer of patients. The various purposes of a transfer sheet include:
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- repositioning a care patient in bed,
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- manoeuvring a care patient in bed, and
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- lateral transfer of a care patient from a bed to a stretcher or other surface.
In this case, the slide sheet set is used to manoeuvre patients in their own beds. It is considered that slide sheets fall within the scope of transfer sheets and as such are covered by Item 92.
In addition, the slide sheet set is specifically designed for people with an illness or disability and is not widely used for people without an illness or disability. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a slide sheet set.
Amendment History
| Date of Amendment | Part | Comment |
|---|---|---|
| 9 April 2019 | Throughout | Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019. |
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-45(1)
Schedule 3
Schedule 3 table item 92
The Regulations
Case References:
Herbert Adams Pty Ltd v FCT
47 CLR 222
Keywords
Goods & services tax
GST free
GST health
Section 38-45 - medical aids and appliances
ISSN: 1445-2782