Issue
Is the entity, a supplier of mobility devices, 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 motorised scooter designed for a person with a disability?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies a motorised scooter designed for a person with a disability.
Facts
The entity is a supplier of mobility devices. The entity supplies a motorised scooter.
The motorised scooter is specifically designed for use by people with an illness or disability, and is 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 the goods and services tax (GST).
Reasons for Decision
Under subsection 38-45(1) of the GST Act, the supply of a medical aid and 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); • is specifically designed for people with an illness or disability; and • is not widely used by people without an illness or disability.
Item 105 in the table in Schedule 3 (Item 105) lists 'wheel chairs, motorised wheelchairs, scooters, tricycles, spinal carriages, and other goods for the carriage of people with disabilities'.
'Scooters' are specifically listed under Item 105. Accordingly, a motorised scooter falls within the scope of this item where it is a scooter for the carriage of people with disabilities.
The motorised scooter is specifically designed for people with an illness or disability, and is not widely used by people without an illness or disability. Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act.