The AAT has set aside the Commissioner’s decision and held that the supply of a sleep positioning system is GST-free under s 38-45(1) of the GST Act as it was a medical aid.
The taxpayer is registered for GST and supplies a sleep positioning product which assists users to control sleep apnea. The product is made of foam with a fabric cover and is designed to be used in conjunction with a mattress to encourage side sleeping. The Commissioner issued a private ruling sought by the taxpayer, which ruled that the product was subject to GST. The taxpayer’s objection to the ruling was subsequently disallowed. The taxpayer broadly argued that the product was GST-free under Item 82 of Sch 3 to s 38-45(1) as it falls under the category of night-time positioning equipment modifications.
The AAT held that the product came within the description contained in item 82 (night-time positioning equipment modifications) as it was clear that the product modifies the shape of a mattress to accommodate the requirements of a person with a disability. Hence, it held that the product was GST-free under s 38-45(1), and set aside the Commissioner’s decision.
(AAT Case [2013] AATA 802, Re Snugfit Australia Pty Ltd and FCT, AAT, Ref No 2013/0711, Constance DP, 13 November 2013.)
[LTN 221, 14/11/13]