ATO ID 2002/535: GST and supply of a toilet support rail
Date of decision: 4 March 2002
Business line: Indirect Tax

Issue
Is the entity, a supplier of bathroom accessories, 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 support rail?

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

Facts
The entity is a supplier of bathroom accessories. The entity supplies a toilet support rail. The toilet support rail is a grab rail that is specifically designed and manufactured for use in disabled toilets and is not used for any other applications. The grab rail can support the weight of a disabled person. 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, a supply of a medical aid and appliance is GST-free if: Item 121 in the table in Schedule 3 (Item 121) lists 'toilet supports'. A toilet support is an aid or appliance that has design characteristics such that it assists a disabled person when they are using a toilet. In addition, generally it must be able to support the weight of the disabled person. A toilet grab rail may possess the characteristics of a toilet support and be identifiable as a toilet support either at the point of manufacture or, in the case of a generic grab rail, at the point of installation in a toilet area. A toilet grab rail is covered by Item 121 if it has the characteristics of and is identifiable as being a toilet support when it is supplied. In this case, the toilet support rail assists a disabled person to use the toilet and it can support the weight of a disabled person. The grab rail is designed and manufactured solely to be used in disabled toilets and has design characteristics that make it identifiable as a toilet support from the point of manufacture. As such, the toilet support rail is a toilet support and is covered by Item 121. In addition, as the toilet support rail is specifically designed for use in disabled toilets and is not used for any other applications, the toilet support rail is specifically designed for people with an illness or disability and is 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 the toilet grab rail.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) Schedule 3 Schedule 3 table item 121
Subject references: Goods & services tax GST free GST health Section 38-45 - medical aids & appliances