Private ruling: GST and supply of medical aids and appliances
Date of advice: 8 October 2018
Published: November 2018

Ruling: Q1: Is the supply of the device a GST-free supply under subsection 38-45(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) ? | A1: Yes. The supply of the device is GST-free under subsec tion 38-45(1) of the GST Act because: ● the device is considered a transcutaneous nerve stimulator machine, which is covered by item 141 in the table in Schedule 3 of the GST Act ● the device is specifically designed for people with an illness or disability and ● the device is not widely used by people without an illness or disability.

Relevant facts and circumstances: You sell medical equipment to hospitals and pharmacies. You acquired the exclusive right to the device from another Australian entity. You will be acting as a distributor for the manufacturer. You will be selling the device for a certain recommended retail price. The device will be marketed as a device for relieving muscle and joint pain. The device uses a small battery to generate a small electromagnetic current, which stimulates blood flow and reduces the perception of pain. You provided a brochure for the device.

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 Schedule 3 table Item 141.