Private ruling: Is the supply of particular electrodes and pads GST-free?
Date of advice: 6 May 2016
Published: June 2016

Ruling: Q1: Is the entity, a supplier of medical aids and appliances and of spare parts for them, making a GST-free supply under section 38-45 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies particular electrodes and pads for a TENS machine? | A1: Yes, the entity is making a GST-free supply under section 38-45 of the GST Act, when it supplies particular electrodes and pads for a medical appliance that is a TENS machine because of the following reasons. The TENS machine is covered by Item 141 'transcutaneous nerve stimulator machines' in the table in Schedule 3 to the GST Act (Item 141). These are also known as 'TENS machines' when designed primarily for pain relief as this TENS machine is. The initial supply of these particular electrodes and pads for this TENS machine, form an integral part of the supply of a TENS machine, and are GST-free under subsection 38-45(1) because the TENS machine: • is covered by Schedule 3 to the GST Act (Schedule 3), or specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (Regulations); and • is specifically designed for people with an illness or disability; and • is not widely used by people without an illness or disability. Supplies of replacement electrodes and pads for a TENS machine are considered to be spare parts for a TENS machine and are GST-free under subsection 38-45(2), provided that the electrodes and pads are supplied as spare parts, and are specifically designed as spare parts for a GST-free TENS machine. Given that these particular electrodes and pads which are supplied as spare parts for this TENS machine and are specifically designed as spare parts for the this TENS machine, these particular electrodes and pads are GST-free under subsection 38-45(2) of the GST Act. Note: As the supply of these particular electrodes and pads is GST-free under subsections 38-45(1) and (2) of the GST Act, the importation of them is a non-taxable importation under section 13-10 of the GST Act.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The TENS machine is a medical appliance. This TENS machine is listed on the Australian Register of Therapeutic Goods and is described an 'analgesic TENS system' whose intended purpose is to 'to treat pain associated with surgery, trauma, musculoskeletal problems, bursitis or dental problems. It is also used in physical therapy and during labour/delivery.' Electrodes and pads are parts necessary for the operation of this TENS machine. These particular electrodes and pads are designed specifically for use as electrodes and pads for this TENS machine. The entity is registered for GST. The entity and the recipient of the supply have not agreed that the supply of these TENS machines and these particular electrodes and pads not be treated as a GST-free supply.

Relevant legislative provisions: All references are to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act): • Section 13-10 | • Section 38-45 | • Schedule 3 table Item 141 | ATO view documents | ATO Interpretive Decision 2001/281 - GST and Non-invasive acupuncture point electric stimulators | ATO Interpretive Decision 2002/713 - GST and spare parts for a TENS machine