ATO ID 2001/134: GST and importation of hypodermic safety syringes
Date of decision: 1 May 2001
Business line: Indirect Tax

Issue
Is the entity, an importer, making a non-taxable importation under paragraph 13-10(b) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it imports hypodermic safety syringes?

Decision
Yes, the entity is making a non-taxable importation under paragraph 13-10(b) of the GST Act, when it imports hypodermic safety syringes.

Facts
The entity is an importer of medical aids and appliances. In this case, the entity is importing hypodermic safety syringes. These syringes are specifically designed for people with an illness or disability. They are not widely used by people without an illness or disability. The entity is registered for goods and services tax (GST).

Reasons for decision
Summary: Under paragraph 13-10(b) of the GST Act, an importation is classed as a non-taxable importation if it would have been a supply that was GST-free or input taxed, if it had been a supply. Therefore, in order for the importation of hypodermic safety syringes to be non-taxable, the supply of hypodermic safety syringes must be GST-free. Under subsection 38-45(1) of the GST Act, the supply of certain medical aids and appliances will be GST-free where the medical aid or appliance: Item 37 of Schedule 3 specifies 'needles and syringes'. The hypodermic safety syringes in question, are considered to be specifically designed for people with an illness or disability. Furthermore, it is considered that these hypodermic syringes are not widely used by people without an illness or disability. As such, the supply of these hypodermic safety syringes is GST-free under subsection 38-45(1) of the GST Act. Therefore, as the supply of these hypodermic safety syringes is GST-free under subsection 38-45(1) of the GST Act; the importation of these syringes is also non-taxable under paragraph 13-10(b) of the GST Act.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 13-5 paragraph 13-10(b) subsection 38-45(1) Schedule 3 Schedule 3 item 37
Other references: GST Consultative Forum on Health - Issues Log issue 4.a.5
Subject references: Goods & services tax GST free GST health Medical aids & appliances Imports Non taxable importations