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Edited version of private ruling
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Ruling
Subject: GST and the supply of Knee Braces as medical aids
Question
Is the supply of knee braces GST-free as medical aids and appliances for the purposes of subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST ACT)?
Answer
Yes, the supply of the knee braces is GST-free.
Detailed reasoning
Subsection 38-45(1) of the GST Act states that a supply is GST-free if:
a) it is covered by Schedule 3 of the GST Act (Medical aids and appliances), or specified in the A New Tax System (Goods and Services Tax) Regulations 1999; and
b) it is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.
Lower limb orthoses are listed at Item 69 of Schedule 3 of the GST Act and accordingly, as GST-free under subsection 38-45(1) of the GST Act. Both of the knee braces are accepted as "lower limb orthoses" for the purposes of item 69 of Schedule 3 of the GST Act.
Section 13-10 of the GST Act defines a non-taxable importation as an importation:
(a) that is non-taxable under Part 3-2 of the Act, or
(b) that would have been a supply that was GST-free or input taxed if it had been a supply.
The knee braces are considered a non-taxable importations pursuant to paragraph 13-10(b) of the GST Act.