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Edited version of your written advice
Authorisation Number: 1012888199531
Date of advice: 15 October 2015
Ruling
Subject: Medical aids and appliances
Question
Is the supply by you of an Ergonomic Cup a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, you are making a GST-free supply under subsection 38-45(1) of the GST Act when you supply the Ergonomic Cup because:
• the Ergonomic Cup falls within the scope of customised eating equipment for people with disabilities covered by Item 28 in the table in Schedule 3 to the GST Act
• the Ergonomic Cup is specifically designed for people with an illness or disability and is not widely used by people without an illness or disability.
Relevant facts and circumstances
• You are an Australian company that is registered for GST.
• You are the importer of the Ergonomic Cup which is manufactured overseas.
• The manufacturer is not registered for GST in Australia.
• The Ergonomic Cup is an ergonomic drinking cup especially designed for adults and children with co-ordination problems, reduced strength and physical disabilities who are unable to drink from a regular cup unassisted.
• The Ergonomic Cup is only marketed to people with an illness or disability.
• The Ergonomic Cup is marketed by your team of sales representatives who sell directly to hospitals and nursing homes.
• You agreed to include in the ruling the following information available from the manufacturer's webpage
The Ergonomic Cup is developed for adults and children with specific problems and reduced strength
The Ergonomic Cup has an unique form and large handles designed to make handling and drinking easy
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1)
A New Tax System (Goods and Services Tax) Act 1999 Schedule 3 table item 28
A New Tax System (Goods and Services Tax) Regulations 1999