3.d. Where the GST Act requires that for a supply to be GST-free it must be made on prescription, does the Pharmacist need to actually dispense the drug or medicine or can they simply sight a prescription and supply the drug or medicine as an over the counter sale?
Non-interpretative – straight application of the law.
It is considered that for an item to be supplied on prescription, the Pharmacist must actually dispense the drug or medicine. Where the Pharmacist chooses not to dispense the drug or medicine and supply the item as an 'over the counter' sale, the patient is entitled to retain possession of their original prescription.
Accordingly, 'over the counter' sales of drugs and medicines covered by the Pharmaceutical Benefits Schedule will not be GST-free.