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Is the entity, an importer of medical aids and appliances, making a taxable importation under section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it imports medical aids and appliances, the supply of which would be GST-free under subsection 38-45(1) of the GST Act if the medical aid or appliance was supplied in Australia?

No, the entity is not making a taxable importation under section 13-5 of the GST Act when it imports medical aid and appliances, the supply of which would be GST-free under subsection 38-45(1) of the GST Act if the medical aid or appliance was supplied in Australia. The entity is making a non-taxable importation as defined in section 13-10 of the GST Act.

The entity is an importer of medical aids and appliances. The entity imports medical aids and appliances for home consumption within the meaning of the Customs Act 1901 . The supply of these medical aids and appliances would be GST-free under subsection 38-45(1) of the GST Act if the medical aid or appliance was supplied in Australia.

Section 13-5 of the GST Act provides that an entity makes a taxable importation if: • goods are imported goods; and • the entity enters the goods for home consumption within the meaning of the Customs Act .

However, an importation is not a taxable importation to the extent that it is a non-taxable importation.

The entity is importing the medical aids and appliances for home consumption within the meaning of the Customs Act and therefore, the positive requirements of section 13-5 of the GST Act are met.

Under section 13-10 of the GST Act, an importation is a non-taxable importation if: • it is a non-taxable importation under Part 3-2 of the GST Act; or • it would have been a supply that was GST-free or input taxed if it had been a supply.

A supply of the medical aids and appliances that the entity is importing would be GST-free under subsection 38-45(1) of the GST Act. Therefore, if there had been a supply to the entity of those medical aids or appliances (instead of an importation by the entity), the supply would have been GST-free under subsection 38-45(1) of the GST Act.

As such, the entity is making a non-taxable importation under section 13-10 of the GST Act when it imports the medical aids and appliances, the supply of which would be GST-free under subsection 38-45(1) of the GST Act if they were supplied in Australia.