Private ruling: GST and product
Date of advice: 19 June 2019
Published: August 2019

Ruling: Q1: Are you making a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you make a supply of a product? | A1: No, you are not making a GST-free supply under subsection 38-45(1) of the GST Act when you make a supply of a product. Your supply is a taxable supply.

Relevant facts and circumstances: You are registered for goods and services tax (GST). You supply products in the health care space. One of your products you supply is a product.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 subsection 38-45(1) | A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Regulations 2019Regulation 38-45.01

Reasons for decision: Summary: A supply of a medical aid or appliance is GST-free under subsection 38-45(1) of the GST Act if: · It is covered by Schedule 3 to the GST Act or specified in the A New Tax System (Goods and Services Tax) Regulations 2019 (GST Regulations), and · The thing supplied is specifically designed for people with an illness or disability, and · The thing supplied is not widely used by people without an illness or disability. There are no items in Schedule 3 to the GST Act that are relevant. Item 4 of Schedule 3 to the GST Regulations (Item 4) lists 'polyurethane film'. It is considered this is an advanced wound care item predominantly consisting of polyurethane film. You stated that the chemical structure of polyurethane is different to the product's ingredients although the molecular composition is similar. The product does not predominantly consist of polyurethane film. As such, the product is not a medical aid and appliance under Item 4. It is not considered that the product comes under any other items in Schedule 3 to the GST Regulations or the GST Act. As such, the supply of the product is not GST-free under subsection 38-45(1) of the GST Act. Your supply is a taxable supply under section 9-5 of the GST Act.