ATO ID 2003/850: GST and supply of a toilet seat and accessories for people with disabilities
Date of decision: 8 July 2003
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 toilet seat, for use by people with disabilities, together with associated accessories?

Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a toilet seat, for use by people with disabilities, together with associated accessories.

Facts
The entity is a supplier of medical aids and appliances. The entity supplies a toilet seat for use by people with disabilities. The entity also supplies associated accessories for use with the toilet seat. The toilet seat is an ergonomically designed bathroom aid that gives its users independence, safety and privacy. The toilet seat is electrically controlled and is designed to enable the elderly, infirmed and those with disabilities to go to the toilet without the aid of a carer. Accessories include swing away handles, oversize buttons and comfort seats. The toilet seat and associated accessories are specifically designed for people with disabilities and are not widely used by people without disabilities. There is no agreement between the entity and the recipient 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 certain medical aids or appliances is GST-free where the medical aid or appliance: There are two separate parts to the entity's supply, these being the toilet seat and associated accessories. Therefore, in order to determine the GST status of the supply, it is necessary to look at each part of the supply separately. Item 111 in the table in Schedule 3 (Item 111) lists 'bathboards or toilet seats for people with disabilities'. The entity's toilet seat is electrically controlled and is designed to enable the elderly, infirmed and those with disabilities to go to the toilet without the aid of a carer. Therefore, the toilet seat is specifically designed for people with disabilities and is covered by Item 111. Item 18 in the table in Schedule 3 to the GST Regulations (Item 18) lists 'customised modifications and accessories for the aids and appliances mentioned in items 111 to 121 of Schedule 3 to the GST Act'. The entity supplies accessories, such as swing away handles, oversize buttons and comfort seats, for use with the toilet seat that is covered by Item 111. As such, the accessories for the toilet seat are covered by Item 18. The toilet seat and accessories are specifically designed for people with an illness or disability and are not widely used by 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 toilet seat, for use by people with disabilities, together with associated accessories.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) Schedule 3 Schedule 3 table item 111
Subject references: Goods and services tax GST free GST health Section 38-45 - medical aids & appliances