Private ruling: GST: medical aids and appliances
Published: April 2014

Ruling: Q2: Will your supply of the associated training and education support to dentists be GST free pursuant to Subdivision 38-C of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? Advice/Answers No

Relevant facts and circumstances: You are registered for GST. You import a product for supply to dentists. You supply the product to dentists - not to individuals. You also provide training and support to the dentist to show them how to use the product. You are not a registered training organisation. The training does not lead to a qualification.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 section 9-40 | A New Tax System (Goods and Services Tax) Act 1999 section 38-45 | A New Tax System (Goods and Services Tax) Act 1999 section 38-85 | A New Tax System (Goods and Services Tax) Act 1999 section 195-1

Reasons for decision: Summary: In this ruling, please note: • All legislative references are to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) unless otherwise specified. • All terms marked by an *asterisk are defined terms in the GST Act. Section 9-40 provides that you are liable for GST on the taxable supplies that you make. Section 9-5 of the GST Act provides that: You make a taxable supply if: (a) you make the supply for *consideration (b) the supply is made in the course or furtherance of an *enterprise that you *carry on (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. | Detailed Reasoning - Product: Your supply of the product and the associated training and support to the dentist is for consideration, is made in the course of your enterprise, is connected with Australia and you are registered for GST. Therefore, the requirements of paragraphs 9-5(a) to 9-5(d) of the GST Act are satisfied. The supply will be taxable unless it is GST-free or input taxed. It is considered that the provisions of the GST Act dealing with input taxed supplies will have no application to the supplies you have identified. Therefore, it needs to be determined whether the supply is GST-free. Subsection 38-45(1) states: (1) 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. (2) A supply is GST-free if the thing supplied is supplied as a spare part for, and is specifically designed as a spare part for, another thing the supply of which would be GST-free under subsection (1). The product is not covered under any of the items listed in Schedule 3. Nor is it specified in the GST Regulations. Therefore, your supply of the product is not GST-free under section 38-45(1). The supply of product is listed in Class Ruling CR 2013/14: Goods and services tax: goods and services supplied by dentists as GST-free in certain circumstances. However, this applies to supplies made by dentists to individuals. It is not relevant to your supplies to the dentist. | Detailed Reasoning - Training: Sections 38-85 states: A supply is GST-free if it is a supply of: (a) an *education course; or (b) administrative services directly related to the supply of such a course, but only if they are supplied by the supplier of the course. 'Education course' is defined in section 195-1. Your supply of the associated training and support services does not fit within any of the items listed as 'education course' in section 195-1. Therefore, your supply of the associated training and support services will not be a GST-free supply.

Question 1: Will your supply of the product be GST free pursuant to Subdivision 38-B of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?