Issue
Is the entity, a supplier of computer equipment, 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 an alternative keyboard?
Decision
Yes, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies an alternative keyboard.
Facts
The entity is a supplier of computer equipment. The entity supplies an alternative keyboard. The alternative keyboard is designed as a substitute keyboard for people who are unable to use their hands to operate a normal computer keyboard. It enables people with disabilities to operate the keyboard by their head movements only.
The user attaches a laser pen, which is pointed towards the alternative keyboard, to their head. The alternative keyboard has special receptors that receive the signal from the laser pen and the chosen letter is then transferred to the attached computer.
The keyboard is not widely used by people without an illness or disability. There is no agreement between the entity and the recipient that the supply is not to be treated as a GST-free supply.
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 Schedule 3 to the GST Act (Schedule 3), or specified in the A New Tax System (Goods and Services Tax) Regulations 2019 (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 12 of Schedule 3 (Item 12) lists 'alternative keyboards'. An alternative keyboard is a keyboard with special features that allow it to be used by people with a disability.
The entity is supplying a keyboard that is designed for people who are unable to use their hands to operate a normal computer keyboard. The user attaches a laser pen, which is pointed towards the alternative keyboard, to their head. The alternative keyboard has special receptors that receive the signal from the laser pen and the chosen letter is then transferred to the attached computer.
Accordingly, the alternative keyboard has special features that allow people with disabilities to operate the keyboard by their head movements only. Therefore, the keyboard falls within the description in Item 12 and is covered by Schedule 3.
The alternative keyboard is designed for people that are unable to use their hands and, therefore is designed for people with an illness or disability. In addition, the alternative keyboard is not widely used by people without an illness or disability. Accordingly, the requirements in subsection 38-45(1) of the GST Act are met.
Therefore, the entity is making a GST-free supply under subsection 38-45(1) of the GST Act when it supplies an alternative keyboard.
Amendment History
Date of Amendment Part Comment 9 April 2019 Throughout Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019 .
Date of Amendment | Part | Comment
9 April 2019 | Throughout | Updated A New Tax System (Goods and Services Tax) Regulations 1999 to A New Tax System (Goods and Services Tax) Regulations 2019 .