Issue
Is the entity, a dental technician, 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 bleaching tray to a dentist?
Decision
No, the entity is not making GST-free supply under subsection 38-45(1) of the GST Act when it supplies a bleaching tray to a dentist. The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a dental technician that supplies goods to dentists. The entity supplies a bleaching tray to a dentist. The bleaching tray is used in a procedure that whitens a patient's teeth.
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.
Reasons for Decision
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.
Bleaching trays are not listed in Schedule 3 or the Regulations. Therefore, the supply of a bleaching tray 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. [NOTE: Section 38-10 of the GST Act provides that, in certain circumstances, supplies of other health services and goods supplied during those health services are GST-free. However, in this case, section 38-10 of the GST Act does not apply to the supply made by the entity to the dentist.
Paragraph 38-10(1)(c) of the GST Act requires that the entity provides 'appropriate treatment' to the recipient of the supply. It is considered that appropriate treatment is provided when a recognised professional assesses the recipient's state of health and determines a process to pursue, in an attempt to preserve, restore or improve the physical or psychological wellbeing of that recipient insofar as that recognised professional's particular area of training allows and will include subsequent supplies for the determined process. In this case, the entity is not providing appropriate treatment to the dentist.]