30 September 1998 GST/HST Ruling HQR0001288 - GST Status of the Supply of

                                                                        GST/HST Rulings and Interpretations
 Directorate
Place Vanier, Tower C, 10th Floor
25 McArthur Avenue
Vanier, ON K1A 0L5

Dear XXXXX

Thank you for your letter of August 11, 1998 (with attachments), concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the transaction(s) described below.

Statemenf of Facts

Our understanding of the facts is as follows:

XXXXX is a battery-operated, XXXXX. It is specifically designed to electrically incinerate XXXXX). This device is intended for home use by diabetics to reduce the incidence of needle-stick injuries. It thus renders them safe for disposal and handling by users and sanitation workers.

Ruling Requested

The GST/HST status of the supply XXXXX[.]

Ruling Given

Based on the facts set out above, we regrettably confirm that the supply of XXXXX is subject to the GST HST. This confirms the ruling dated February 18, 1998, from XXXXX of our XXXXX office. There are no provisions in the Excise Tax Act which would zero-rate this supply. We have undertaken to send copies of your product literature to the Department of Finance for their consideration when contemplating any future legislative changes.

On April 1, 1997, the harmonized sales tax (HST) replaced the goods and services tax (GST) and the provincial sales tax (PST) in the three participating provinces of Nova Scotia, New Brunswick and Newfoundland with a harmonized tax rate of 15% to the extent that they are taxable supplies (which are not zero-rated), tax must be collected at the harmonized rate.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to departmental interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-9590.

Yours truly,

Ken Syer
Senior Rulings Officer
Municipalities and Health Care Services Unit
Public Service Bodies and Governments Division
GST/HST Rulings and Interpretations Directorate