Issue
Is the entity, a supplier of medical aids and appliances, 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 sells a medical aid or appliance that is not covered by an item in the table in Schedule 3 to the GST Act (Schedule 3) or specified in the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)?
Decision
No, the entity is not making a GST-free supply under subsection 38-45(1) of the GST Act when it sells a medical aid or appliance that is not covered by an item in the table in Schedule 3 or specified in the GST Regulations.
Facts
The entity is a supplier of medical aids and appliances. The medical aids and appliances are not covered by an item in the table in Schedule 3 or specified in the GST Regulations.
The entity is registered for goods and services tax (GST).
Reasons for Decision
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 an item in the table in Schedule 3 or specified in the GST Regulations; • is specifically designed for people with an illness or disability; and • is not widely used by people without an illness or disability.
The entity is supplying medical aids and appliances that are not covered by an item in the table in Schedule 3 or specified in the GST Regulations. Therefore, the entity is not making a GST-free supply of the medical aids and appliances under subsection 38-45(1) of the GST Act.