Private ruling: GST and medical aids and appliances
Date of advice: 5 October 2017
Published: February 2018

Ruling: Q1: Is your supply GST-free? | A1: Yes. | Q2: Can the ruling be back dated to when you began supplying your products? | A2: Yes.

Relevant facts and circumstances: You are registered for GST. You supply medical aids and appliances.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1)

Reasons for decision: Summary: Under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), the supply of certain medical aids and appliances is GST-free where the medical aid or appliance: ● is covered by Schedule 3 to the GST Act (Schedule 3) or in the A New Tax System (Goods and Services Tax) Regulations ● is specifically designed for people with an illness or disability, and ● is not widely used by people without an illness or disability. Your medical aids and appliances are covered by Schedule 3 to the GST Act; are specifically designed for people with a disability and are not widely used by people without an illness or disability. Therefore, you are making a GST-free supply under subsection 38-45(1) of the GST Act when you supply your medical aids and appliances. | Detailed Reasoning - Reasons for Decision 2: Subsections 359 - 25(1) & (2) of the Taxation administration Act 1953 states the following: | Detailed Reasoning - 359-25(1): A private ruling may specify the time from which it begins to apply and the time at which it ceases to apply. | Detailed Reasoning - 359-25(2): The specified start time, or end time, may be before, when, or after the private ruling is made and may be determined by reference to a specified event. Practice Statement Law Administration (PS LA 2008/3) explains the forms of advice and guidance the Australian Taxation Office provides about the application of laws administered by the Commissioner. Paragraph 108 of PS LA 2008/3 has been reproduced below: 108. A private ruling should specify the time it begins to apply and the time it ceases to apply, for example, a particular income year. This can be any time in the future or the past. Therefore, the specified start or end time of a private ruling may be before, when or after the private ruling is made and the time may be specified by reference to the occurrence of a particular event (for example, in this case the time you began supplying your medical aids and appliances).