Private ruling: GST and taxable importations
Date of advice: 12 November 2021
Published: February 2022
Ruling period: 1 November 20XX to quarter ending 31 December 20XX
Date scheme commenced: 1 November 20XX

Ruling: Q1: Is Entity X (you) liable for GST on the importation of the Bench Seat under section 13-15 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: No. Pursuant to section 13-15 of the GST Act you must pay GST on any 'taxable importation'. You make a 'taxable importation' if you import goods, and those goods are entered for home consumption within the meaning of the Customs Act 1901 . However, the importation is not a 'taxable importation' to the extent it is a 'non-taxable importation'. Paragraph 13-10(b) of the GST Act provides that an importation is a non-taxable importation where the item would have been GST-free if it had been a supply. Under section 38-45 of the GST Act a 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 or specified in Schedule 3 to the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations); and • specifically designed for people with an illness or disability; and • not widely used by people without an illness or disability. All three criteria listed above must be satisfied for the medical aid or appliance to be GST-free. In this case it is accepted that the Bench Seat falls within item 16 in Schedule 3 to the GST Regulations. Therefore, on the basis that it is specifically designed for people with an illness or disability and not widely used by people without an illness or disability the supply is a GST-free supply. Accordingly, as paragraph 13-10(b) of the GST Act is satisfied you are not liable for GST on the importation of the Bench Seat.

Relevant facts and circumstances: You carry on an enterprise and are registered for GST. You import a product for home consumption which is known as Product X (Bench Seat). The Bench Seat is fully adjustable in height and can tilt from front to back and side to side which allows for the correct seating angle to be obtained and allows the person to sit comfortably and safely. The Bench Seat is specifically designed for people with disabilities or illness and is not widely used by people without disabilities or illness.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 13-5 | A New Tax System (Goods and Services Tax) Act 1999 section 13-10 | A New Tax System (Goods and Services Tax) Act 1999 section 13-15 | A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-45(1)(a)