GST and supply of mouthguard devices to a dentist

Is the entity, a dental laboratory, 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 supplies a mouthguard device to a dentist?

No, the entity is not making GST-free supply under subsection 38-45(1) of the GST Act when it supplies a mouthguard device to a dentist. The entity is making a taxable supply under section 9-5 of the GST Act.

The entity is a dental laboratory that supplies goods to dentists. In this case, the entity supplies a mouthguard device to a dentist. Mouthguard devices include mouthguards, mouthguard articulation, re-adapt mouthguards and mouthguard cases.

The entity is registered for goods and services tax (GST). The supply meets the other positive limbs of section 9-5 of the GST Act.

Under subsection 38-45(1) of the GST Act, the supply of certain medical aids and appliances is 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.

Mouthguard devices are not covered by Schedule 3 or specified in the Regulations. Therefore, the supply of a mouthguard device from the entity to the dentist is not GST-free under subsection 38-45(1) of the GST Act.

The entity is registered for GST and the supply meets the other positive limbs of section 9-5 of the GST Act. Furthermore the supply is neither GST-free under Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the supply is a taxable supply under section 9-5 of the GST Act.