GST and the importation of needles and syringes

Is the entity, an importer of medical aids and appliances, 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 needles and syringes?

Yes, the entity is making a non-taxable importation under paragraph 13-10(b) of the GST Act when it imports needles and syringes.

The entity is an importer of medical aids and appliances. In this case, the entity is importing needles and syringes for use by people with an illness or disability. The needles and syringes are not to be widely used by people who do not have an illness or disability.

The entity is registered for goods and services tax (GST).

Under paragraph 13-10(b) of the GST Act, an importation is a non-taxable importation if the thing imported would have been GST-free or input taxed if it had been supplied within Australia.

Of relevance in this instance is subsection 38-45(1) of the GST Act which states that the supply of a medical aid or appliance 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 (GST 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 in the table in Schedule 3 (item 37) lists 'needles and syringes'.

In this case, the needles and syringes are listed in Schedule 3 and the needles and syringes are for use by people with an illness or disability and are not to be widely used by people who do not have an illness or disability. As such, the supply of the needles and syringes would satisfy the requirements of subsection 38-45(1) of the GST Act to be GST-free as medical aids or appliances if supplied within Australia.

Therefore, as the supply of the needles and syringes is GST-free if supplied within Australia, the importation of the needles and syringes is a non-taxable importation under paragraph 13-10(b) of the GST Act.