Private ruling: GST and Medical aids and appliances
Published: November 2011

Ruling: Q1: Are the various chairs, baths and adjustable treatment tables and couches to be sold goods and services tax (GST) free? | A1: No, the various chairs, baths and adjustable treatment tables and couches to be sold are not GST-free. They are taxable supplies.

Relevant facts and circumstances: You are registered for GST You manufacture and import products on behalf of a large medical market. The products are electrically height adjustable with the use of a foot switch. The head and foot of the tables are manually adjustable with the assistance of a gas strut and lever. The sales of tables are marketed to medical practitioners in their specific field of work and many have also been sold to the teaching establishments. These products are specifically designed for a segment of practitioners to use on people who suffer illness or disability. These products are not used as furniture but in a specific manner as required by the practitioner The chiropractic table used specifically in the treatment of many chronic conditions associated with spinal and bone issues. You have sold tables relevant to the following sectors: § Physiotherapy § Osteopathy § General Practice § Neurological Tables § You also sell to end users You do not sell these products at the retail level. You do not have any agreement with the recipients of the supply of the above mentioned items that the supply of these items will not be treated as a GST-free supply, You currently sell the tables inclusive of GST. You have provided photographs of the various products with your application.

Relevant legislative provisions: Section 9-5 A New Tax System (Goods and Services Tax) Act 1999 | Subsection 38-45(1) A New Tax System (Goods and Services Tax) Act 1999

Reasons for decision: Summary: In considering whether a supply is subject to GST, regard must be had to section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) which 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 section 195 of the GST Act. Subsection 9-30(1) of the GST Act states that a supply is GST-free if it is GST-free under Division 38. Subdivision 38-B of the GST Act sets out the requirements for a supply relating to Health to be GST-free. Subsection 38-45(1) dealing with medical aids and appliances states that: 38-45 Medical aids and appliances (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. Items 59, 60 and 61 of Schedule 3 of the GST Act list manually and electronically operated adjustable beds and hospital-type beds, respectively. Therefore, provided these items are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability they will be GST-free. It should be noted that items which are GST-free under subsection 38-45(1) are GST-free at every point in the supply chain. However, in this case you are importing adjustable couches, chairs, baths and various manipulation tables which are not listed in Schedule 3 of the GST Act and, therefore, the sale of such items to the retailer will be subject to GST.

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.