Private ruling: GST and medical appliances
Date of advice: 26 August 2016
Published: October 2016

Ruling: Q1: Are you 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 you supply products designed for people with an illness or disability: | A1: Yes, you are making a GST-free supply under subsection 38-45(1) of the GST Act when you supply products which are designed for people with an illness or disability.

Relevant facts and circumstances: You are registered for GST. You supply medical appliances that are designed for people with an illness or disability.

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 a medical aid or appliance is GST-free where the medical aid or appliance: ● 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 (GST Regulations); ● is specifically designed for people with an illness or disability; and ● is not widely used by people without an illness or disability. Your products are covered by Schedule 3 to the GST Act, are specifically designed for people with an illness or disability; and are not widely used by people without an illness or disability. Accordingly, the supply of your products satisfies the requirements in subsection 38-45(1) of the GST Act and will be GST-free.