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Edited version of your written advice
Authorisation Number: 1051431062955
Date of advice: 8 October 2018
Ruling
Subject: GST and supply of medical aids and appliances
Question
Is the supply of the device 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.
The supply of the device is GST-free under subsection 38-45(1) of the GST Act because:
● the device is considered a transcutaneous nerve stimulator machine, which is covered by item 141 in the table in Schedule 3 of the GST Act
● the device is specifically designed for people with an illness or disability and
● the device is not widely used by people without an illness or disability.
Relevant facts and circumstances
You sell medical equipment to hospitals and pharmacies.
You acquired the exclusive right to the device from another Australian entity.
You will be acting as a distributor for the manufacturer.
You will be selling the device for a certain recommended retail price.
The device will be marketed as a device for relieving muscle and joint pain.
The device uses a small battery to generate a small electromagnetic current, which stimulates blood flow and reduces the perception of pain.
You provided a brochure for the device.
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 141.