ATO ID 2002/991: GST and modifications made to doors relating to the disability of a particular person
Date of decision: 10 August 2001
Business line: Indirect Tax

Issue
Is an entity, a supplier of building services, 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 widens a doorway within a home to allow disabled access and attaches a screen door?

Decision
No, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it widens a doorway within a home to allow disabled access and attaches a screen door. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts
The entity is a supplier of building services. The entity modifies a doorway within a home to allow wheelchair access by widening it and attaches a screen door. The screen door does not have any special characteristics or features. The entity does not receive any Commonwealth, State or Territory government funding. The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.

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 52 in the table in Schedule 3 (Item 52) lists 'special door fittings relating to the disability of a particular person'. The phrase 'relating to the disability of a particular person' means that, when supplied, the special door fittings must be customised in such a way that the method of operation of the door relates specifically to the needs or requirements of a particular disabled person. The entity alters the framework of the doorway by widening it. This is a service provided to alter the existing structure of the building and is not a supply of actual goods, such as a special door fitting. Accordingly, this service is not covered by Item 52. In addition, the screen door attached to the widened doorway does not have any special characteristics. It is not a door fitting customised in such a way that the method of operation of the door relates specifically to the needs or requirements of a particular disabled person. Therefore, the screen door is not covered by Item 52. Therefore, the supply of the entity's services to widen the doorway and attach a screen door is not a GST-free supply under subsection 38-45(1) of the GST Act. The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it widens a doorway within a home to allow disabled access and attaches a screen door.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 subsection 38-30(4) section 38-38 section 38-40 subsection 38-45(1) Division 38 Division 40 Schedule 3 Schedule 3 table item 52
Other references: Home and Community Care Act 1985
Subject references: Goods & services tax GST free GST health Section 38-45 - medical aids & appliances Taxable supply