GST and full and partial dentures

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 full and partial dentures?

Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies full and partial dentures.

The entity is a dental laboratory. The entity supplies full and partial dentures.

The full and partial dentures are designed specifically for people with an illness or disability and are not widely used by people without an illness or disability.

There is no agreement between the entity and the recipient that the supply will not be treated as a GST-free supply.

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

Under subsection 38-45(1) of the GST Act, 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 30 in the table in Schedule 3 (Item 30) lists 'dentures and artificial teeth'. The term 'denture' is not defined in the GST Act and therefore takes on its ordinary meaning. The Macquarie Dictionary (1997) defines a 'denture' as 'an artificial restoration of several teeth (partial denture) or all of the teeth of either jaw (full denture).'

Therefore, full and partial dentures are 'dentures' for the purposes of Item 30. Additionally, the full and partial dentures are designed specifically for people with an illness or disability and are not widely used by people without an illness or disability.

As such, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies full and partial dentures.