Private ruling: GST medical aids and appliances
Date of advice: 24 July 2017
Published: November 2017

Ruling: Q1: Is the supply of your medical aid GST-free? | A1: No. The supply of your medical aid is not GST-free.

Relevant facts and circumstances: You are introducing a medical aid and appliance in the market.

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

Reasons for decision: Summary: Under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), the supply of a medical aid and appliance 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. Medical aids and appliances that satisfy all these conditions are GST-Free at every point in the supply chain - from manufacture to consumer. Your medical aid and appliance is not covered in Schedule 3 nor is it specified in the Regulations to the GST Act. Therefore, a supply of your medical aid and appliance, in itself, does not satisfy the requirement in subsection 38-45(1) of the GST Act.