Issue
Is the entity, a medical practitioner who provides in vitro fertilisation (IVF) treatment, making a GST-free supply under subsection 38-7(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it provides an embryo freezing service as part of a patient's IVF treatment?
Decision
Yes, the entity is making a GST-free supply under subsection 38-7(1) of the GST Act, when it provides an embryo freezing service as part of a patient's IVF treatment.
Facts
The entity is a medical practitioner (as defined in section 195-1 of the GST Act) who provides IVF treatment. The entity freezes a patient's embryos as part of this treatment. The entity is registered for goods and services tax.
A medicare benefit is not payable for this service. The service is not rendered in prescribed circumstances within the meaning of regulation 14 of the Health Insurance Regulations made under the Health Insurance Act 1973 nor for cosmetic reasons.
In this case, the service is generally accepted in the medical profession as necessary for the appropriate treatment of the patient.
Reasons For Decision
A supply of medical services is GST-free under subsection 38-7(1) of the GST Act.
A 'medical service' is defined under section 195-1 of the GST Act to mean: • a service for which a medicare benefit is payable under Part II of the Health Insurance Act 1973 ; or • any other service supplied by or on behalf of a medical practitioner or approved pathology practitioner that is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply.
In this case, there is no medicare benefit payable for the service provided by the entity. However, the supply of an embryo freezing service to the patient as part of the patient's IVF treatment is facilitated by a medical practitioner and the service is generally accepted in the medical profession as being necessary for the appropriate treatment of the recipient of the supply. Accordingly, the supply meets the definition of a medical service under section 195-1 of the GST Act.
Therefore, as the medical service is not excluded under subsection 38-7(2) of the GST Act, the entity is making a GST-free supply of embryo freezing services to its patient under subsection 38-7(1) of the GST Act. [Note: If an entity such as a medical scientist provides an embryo freezing service, the supply is not GST-free under section 38-7 of the GST Act as a medical practitioner is not facilitating the embryo freezing service.]