Issue
Is the entity, an importer, making a non-taxable importation under paragraph 13-10(b) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it imports hypodermic safety syringes?
Decision
Yes, the entity is making a non-taxable importation under paragraph 13-10(b) of the GST Act, when it imports hypodermic safety syringes.
Facts
The entity is an importer of medical aids and appliances. In this case, the entity is importing hypodermic safety syringes. These syringes are specifically designed for people with an illness or disability. They are not widely used by people without an illness or disability.
The entity is registered for goods and services tax (GST).
Reasons For Decision
Under paragraph 13-10(b) of the GST Act, an importation is classed as a non-taxable importation if it would have been a supply that was GST-free or input taxed, if it had been a supply. Therefore, in order for the importation of hypodermic safety syringes to be non-taxable, the supply of hypodermic safety syringes must be GST-free.
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 2019 (Regulations); and • is specifically designed for people with an illness or disability; and • is not widely used by people without an illness or disability.
Item 37 of Schedule 3 specifies 'needles and syringes'. The hypodermic safety syringes in question, are considered to be specifically designed for people with an illness or disability. Furthermore, it is considered that these hypodermic syringes are not widely used by people without an illness or disability. As such, the supply of these hypodermic safety syringes is GST-free under subsection 38-45(1) of the GST Act.
Therefore, as the supply of these hypodermic safety syringes is GST-free under subsection 38-45(1) of the GST Act; the importation of these syringes is also non-taxable under paragraph 13-10(b) of the GST Act. [Note: Under section 13-5 of the GST Act, there is no registration requirement for taxable importations, and the importer need not be carrying on an enterprise.]
Amendment History
Date of Amendment Part Comment 9 April 2019 Throughout Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019 .
Date of Amendment | Part | Comment
9 April 2019 | Throughout | Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019 .