Private ruling: GST on blood pressure monitors
Published: July 2012

Ruling: Q1: Is a blood pressure monitor a GST-free medical aid or appliance? | A1: No, a blood pressure monitor is not a GST-free medical aid or appliance.

Relevant facts and circumstances: You are the importer of a blood pressure monitor. You market the product as available for all people who wish to monitor their blood pressure on a regular basis without having to go and see their doctor. The blood pressure monitor is used as a non-invasive blood pressure measurement device to detect any changes from normal values, which may indicate health problems. Blood pressure measurement is also performed to monitor the effectiveness of medication and other methods to control elevated blood pressure. You have always charged GST on the sale of the blood pressure monitor but request clarification as to whether it is a GST-free medical aid or appliance under section 38-45 of the A New Tax System (Goods and Services Tax) Act 1999 .

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 9-5, Section 38-45, Schedule 3 and A New Tax System (Goods and Services Tax) Regulations 1999 Schedule 3.

Reasons for decision: Summary: Section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states that: You make a taxable supply if: (a) you make the supply for *consideration; and (b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and (c) the supply is *connected with Australia; and (d) you are *registered, or *required to be registered. However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed. * Denotes a term defined in 195-1 of the GST Act. Subsection 38-45(1) of the GST Act states that: A supply is GST-free if: (a) it is covered by Schedule 3 (medical aids and appliances), or specified in the regulations; and (b) the thing supplied is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability. Therefore, a medical aid or appliance must meet those above requirements to be GST-free. If the item is not specifically provided for in schedule 3 to the GST Act or schedule 3 to the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations), it is not GST-free even if it is similar to items included in the GST Act or GST Regulations. A blood pressure monitor is not listed in schedule 3 to the GST Act, nor is it listed in schedule 3 to the GST Regulations, so the requirements in paragraph 38-45(1)(a) are not satisfied. Additionally, a blood pressure monitor is not specifically designed for people with an illness or disability. A blood pressure monitor is used by people with or without an illness or disability and also by doctors. You specifically market the blood pressure monitor to people who wish to monitor their blood pressure on a regular basis without having to go and see their doctor. Thus, the requirement in paragraph 38-45(1)(b) is not satisfied, as blood pressure monitors are widely used by people without an illness or disability. The Australian Taxation Office cannot add new medical aids and appliances to schedule 3 to the GST Act or schedule 3 to the GST Regulations - only Parliament can do this. Accordingly, your supply of blood pressure monitors is not GST-free under section 38-45 of the GST Act and is thus a taxable supply. You a taxable supply as you make the sale of blood pressure monitors for consideration, the supply is made in the course of an enterprise that you carry on, the supply is connected with Australia and you are registered for GST. You are required to include GST in the price of any supply of blood pressure monitors you make.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.