GST and supply of wheelchair gloves

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 supplies wheelchair gloves?

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

The entity is a supplier of medical aids and appliances. The entity supplies wheelchair gloves.

The wheelchair gloves are designed specifically to protect a person's hands when using a wheelchair. They are often used with sporting wheelchairs.

The wheelchair gloves are specifically designed 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 of the supply 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 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 106 in the table in Schedule 3 (Item 106) lists 'accessories associated with wheelchairs, motorised wheelchairs, scooters, tricycles, spinal carriages and other goods for the carriage of people with disabilities'.

For a medical aid or appliance to be covered by Item 106, it does not need to be an accessory 'for' items listed, rather it only needs to be 'associated with' the items listed.

The entity supplies wheelchair gloves that are specifically designed to protect the hands when using a wheelchair. They are often used with sporting wheelchairs. As the wheelchair gloves are designed to protect the hand when using a wheelchair, they are an accessory associated with wheelchairs. Therefore, the wheelchair gloves are covered by Item 106.

The wheelchair gloves are specifically designed 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 wheelchair gloves.

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 .