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Edited version of private advice
Authorisation Number: 1051631676480
Date of advice: 3 February 2020
Ruling
Subject: GST and Tactile Devices
Question
Is the supply of your product a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act (GST Act)?
Answer
Yes.
This ruling applies for the following period
The scheme commences on:
Start date is X XX 2020
Relevant facts and circumstances
You are registered for goods and services tax (GST).
You sell tactile devices
You have been selling them for a few months and treat these as a taxable supply.
You do not provide any installation for the product.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999, Section 9-5
A New Tax System (Goods and Services Tax) Act 1999, Section 38-85
A New Tax System (Goods and Services Tax) Act 1999, Section 195-1
Reasons for decision
The supply of a medical aid or appliance is GST-free where it meets the requirements of subsection 38-45(1) of the GST Act, which states:
A supply is GST-free if:
(a) it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations; and
(b) the thing supplied is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability.
Schedule 3 to the GST Act specifies medical aids and appliances. Your product is listed in the Schedule and we consider that they are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability.
As such your supply is GST-free.