Issue
Is the entity, a medical centre operator, making a GST-free supply under section 38-7 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies chelation therapy to a client where the therapy is not for the treatment of heavy metal poisoning?
Decision
No, the entity is not making a GST-free supply under section 38-7 of the GST Act, when it supplies chelation therapy to a client where the therapy is not for the treatment of heavy metal poisoning. The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a medical centre operator. The entity supplies chelation therapy to a client. Chelation therapy is the intravenous administration of ethylenediamine tetra-acetic acid or any of its salts.
The entity's supply of therapy to the patient is not for the treatment of heavy metal poisoning. The treatment is administered by a registered nurse under the supervision of a medical practitioner. These services meet the definition of 'professional services' in section 195-1 of the GST Act.
The entity is registered for goods and services tax (GST) and the supply meets the other positive limbs of section 9-5 of the GST Act.
Reasons for Decision
Under subsection 38-7(1) of the GST Act, a supply of a medical service is GST-free. However, paragraph 38-7(2)(a) of the GST Act provides that the supply of a medical service is not GST-free if it is a supply of a professional service rendered in prescribed circumstances within the meaning of regulation 14 of the Health Insurance Regulations 1975 made under the Health Insurance Act 1973 (other than prescribed circumstances set out in paragraphs 14(2)(ea), (f) and (g)).
Paragraph 14(2)(a) of the Health Insurance Regulations provides that professional services rendered in relation to the provision of chelation therapy otherwise than for the treatment of heavy-metal poisoning are professional services rendered in prescribed circumstances.
The entity's supply of professional services relates to chelation therapy that is not for the treatment of heavy-metal poisoning and, as such, the service is excluded from being GST-free under subsection 38-7(1) of the GST Act.
The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under any other provision in Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies chelation therapy to a client where the therapy is not for the treatment of heavy metal poisoning.