Private ruling: Medical aids and appliances
Published: September 2014

Ruling: Q1: Is the supply of Product A and Product B GST-free under section 38-45 of the GST Act? | A1: No, the supply of Product A and Product B is not GST-free under the GST Act.

Relevant facts and circumstances: • You are a company carrying on an enterprise in supplying medical aids and appliances. • You are registered for the goods and services tax (GST). • You distribute a range of products for the medical profession, including the dental profession. Some products are sold directly to the public. • The products that are the subject of this private ruling request are used in dental laboratories and clinics by those in dentistry profession. These products are sold only to the dentistry profession and to be used for treating their patients. • The products are used by the dentistry profession as a medical tool. • The products are identified as Product A and Product B. • In broad terms these products are appliances used in dental laboratories for use in dental wax. Details of these products are given in your website. • These products are not currently listed on Schedule 3 to the GST Act.

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

Reasons for decision: Summary: Subsection 38-45(1) of the GST Act provides that 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 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. All the above requirements must be satisfied for a medical aid or appliance to be GST-free. The first requirement is that the medical aid or appliance must be listed in the table in Schedule 3 or the GST Regulations. Product A and Product B are not listed in either Schedule 3 to the GST Act or in the GST Regulations. Further, these products are not designed for people with an illness or disability but for use by those in the dentistry profession for treating people with an illness or disability. Furthermore, the products are not directly used by people with an illness or a disability. As such, none of the requirements of subsection 38-45(1) of the GST Act are satisfied when these products are supplied. Consequently, the supply of these products is not GST-free and is a taxable supply where the requirements of section 9-5 of the GST Act are satisfied.