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Is the entity, a supplier of medical aids and appliances, 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 it sells diabetes management products?

Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it sells diabetes management products.

The entity is a supplier of medical aids and appliances. In this case, the entity is selling diabetes management products. Specifically, the entity is selling finger prickers; alcohol skin wipes; test strips; needles and syringes; and glucose monitors.

The diabetes management products are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability.

There is no agreement between the entity and the recipient that the supply will not be treated as a GST-free supply.

The entity is registered for goods and services tax (GST).

Under subsection 38-45(1) of the GST Act, the supply of certain medical aids and appliances will be 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 (Regulations); and • is specifically designed for people with an illness or disability; and • is not widely used by people without an illness or disability.

Diabetes management products listed in Schedule 3 are: finger prickers item 34 alcohol skin wipes item 35 test strips item 36 needles and syringes item 37 glucose monitors item 38

finger prickers | item 34

alcohol skin wipes | item 35

test strips | item 36

needles and syringes | item 37

glucose monitors | item 38

In this case, the entity is supplying diabetes management products that are covered by Schedule 3. Furthermore, the diabetes management products are specifically designed for people with an illness or disability and are not widely used by people without an illness or disability. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it sells diabetes management products.