ATO ID 2002/25: GST and slide sheets
Date of decision: 12 July 2001
Business line: Indirect Tax

Issue
Is the entity, a supplier of medical aids and appliances, making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies a slide sheet set?

Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act, when it supplies a slide sheet set.

Facts
The entity is a supplier of medical aids and appliances. The entity supplies slide sheet sets to hospitals. The slide sheet set is used to manoeuvre patients on their own beds in the course of their hospital care. The slide sheet set consists of two slide sheets. These sheets are constructed of specialised fabric with low friction inner surfaces that glide over themselves during a patient transfer. The slide sheets cannot be washed in the same way as ordinary sheets. The slide sheet set is specifically designed for people with an illness or disability and is not widely used by people without an illness or disability. There is no agreement between the entity and the hospital (recipient of the supply) that the supply will not be treated as a GST-free supply. The entity is registered for goods and services tax (GST).

Reasons for decision
Summary: Under subsection 38-45(1) of the GST Act, the supply of a medical aid and appliance is GST-free where the medical aid or appliance: Item 92 in the table in Schedule 3 to the GST Act (Item 92) lists transfer sheets, mats and belts. As such, it is necessary to determine whether the slide sheet set falls within the scope of transfer sheets. The term 'transfer sheets' is not defined in the GST Act. Generally, where a term is not defined in the relevant Act, it is usually interpreted in accordance with its ordinary meaning, unless it has a special or technical meaning. Where a term has a special or technical meaning, it is necessary to determine its meaning by reference to the industry to which that term relates (Herbert Adams Pty Ltd v FCT (1932) 47 CLR 222). It is considered that transfer sheets are sheets that may be used to assist in the transfer of patients. The various purposes of a transfer sheet include: In this case, the slide sheet set is used to manoeuvre patients in their own beds. It is considered that slide sheets fall within the scope of transfer sheets and as such are covered by Item 92. In addition, the slide sheet set is specifically designed for people with an illness or disability and is not widely used for people without an illness or disability. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a slide sheet set.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) Schedule 3 Schedule 3 table item 92
Case references: Herbert Adams Pty Ltd v FCT 47 CLR 222
Subject references: Goods & services tax GST free GST health Section 38-45 - medical aids and appliances