1 June 1996 GST/HST Interpretation 11860-2[4] - GST and the Supply of

DearXXXXX

This is in response to your letter of April 15, 1996, in which you request a Goods and Services Tax (GST) application ruling with respect to the supply of the XXXXX machine and related supplies.

I understand from the information provided that the facts are as follows:

Facts:

1) The XXXXX machine is used by physicians and therapists in pain management and is a substitute for drug therapy.

2) The unit is an electric device which can be clipped on to an individual's person and when adjusted at specific settings, will administer an electric pulse to a specified area. This has several pain management benefits such as the release of naturally produced endorphins, the blocking of the pain signal, and other theories.

Ruling Given:

Part II to Schedule VI of the Excise Tax Act (ETA), entitled "Medical Devices", lists medical devices the supply of which are zero-rated for GST purposes. The supply of any item which is not included in the list is taxable at a rate of 7 %.the XXXXX machine and related products are not on the list of medical devices, we rule that the supply of this machine and related products are subject to the GST at a rate of 7% pursuant to subsection 165(1) of the ETA.

This ruling is given subject to the general limitations and qualifications outlined in GST Memoranda Series 1.4[.] We are bound by this ruling provided that none of the above issues are presently under audit, objection or appeal, there are no relevant changes in the future to the Excise Tax Act and provided that you have fully described all necessary facts and transactions for which you requested a ruling.

If you have any questions or comments, please do not hesitate to contact Michèle Brûlé, Policy Officer, at (613) 952-9208.

Yours truly,

J.A. Venne
Director
Public Service Bodies and Government
GST Rulings and Interpretations