Private ruling: GST and medical aids and appliances

Ruling: Q1: Is your supply of certain medical aids and appliances (and associated replacement parts) either by sale or hire GST-free? | A1: Those medical aids and appliances satisfying the requirements of subsection 38-45(1) of the A New Tax System (Goods and services Tax) Act 1999 (GST Act) will be GST-free when sold or hired.

Relevant facts and circumstances: · You are registered for GST. · You are to supply medical aids and appliances. · You do not have an agreement with your customer that the supply of the medical aids and appliances will not be GST-free.

Relevant legislative provisions: GST Act Section 38-45 with reference to Schedule 3. | A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations) Schedule 3.

Reasons for decision: Summary: Those medical aids and appliances satisfying the requirements of subsection 38-45(1) of the GST Act will be GST-free when sold or hired. | Detailed Reasoning - Detailed reasoning: Subsection 38-45(1) of the GST Act provides that a supply of a medical aid or appliance is GST-free where it is: · covered by an item listed in Schedule 3 to the GST Act or in Schedule 3 to the GST Regulations · specifically designed for people with an illness or disability, and · not widely used by people without an illness or disability. Your medical aids and appliances meet the requirements of section 38-45 of the GST Act. Consequently, your supply of the medical aid or appliance will be GST-free. Hire of equipment The GST Act does not stipulate that the medical aid or appliance must be purchased for it to be GST-free. Hence, any medical aid or appliance that is GST-free when sold is also GST-free when hired.

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