1.k. Are there items of suppositories which:
(i) will not qualify for GST-free (supply chain) status under Schedule 3; but
(ii) will qualify for GST-free (non supply chain) status under any of subsections 38-50(1), (2), (4),(4A) or (5)?
Non-interpretative – straight application of the law.
'Enemas, suppositories and applicators' are included at item 25 of Schedule 3. It is considered that only suppositories used for the relief of constipation come within this item.
In deciding on this interpretation, it was determined that there is some ambiguity created by the context within which the word 'suppositories' appears in Schedule 3. Section 182-15 provides that because interpretation of the word 'suppositories' in the context of it's surrounding words is ambiguous, reference should be made to the heading in the second column in Schedule 3. In this case, the heading is "Continence". Accordingly, it was concluded that 'suppositories' as it appears in Schedule 3 is limited to those which are intended to relieve constipation.
Accordingly, suppositories used for the relief of constipation will be GST-free at all points in the supply chain pursuant to subsection 38-45(1). Suppositories used for a purpose other than the relief of constipation will not be GST-free at all points in the supply chain but may be GST-free where supplied to an individual for private or domestic use or consumption under section 38-50. (Refer to the explanatory section at the commencement of issue 3 which discusses the elements of section 38-50).
Suppositories used for a purpose other than for relief of constipation and which do not meet the requirements so that they are GST-free under section 38-50, will not be GST-free.