That would mean that a GA registered LSA aircraft such as a Jabiru could be filled with non-TSO'ed instruments and as long as it's approved under ATSM LSA standards, it's all good ! (in fact, the are full of Chinese instruments!)
J160 (RAA - same as GA with type certificate) in 1996 had none TSO'ed instruments. The altimeter (non TSO chinese) became unreliable so got a (no tag - don't ask) altimeter of a TSO type; the instrument guy at MB fixed it (clean only) and provided tag and calibration certificate (VFR but within IFR specs) for less than a Falcon non TSO would have cost new.
The instrument guy also said CASA had told them not to fix or calibrate chinese altimeters.