3.g. Some state legislation provides for certain products to be Schedule 2 on the Standard for the Uniform Scheduling of Medicines and Poisons (SUSMP), and others not to be Scheduled at all. As a wholesaler we provide an indication of the tax treatment the pharmacist will apply to the product. Where the product is GST-free to consumers in five States but not in one, we could consider that product to be GST-free. What is the risk to us of doing that?
Non-interpretative – straight application of the law.
The main principal of the GST Act is that responsibility to remit GST is with the supplier. As the supplier is liable for GST, the supplier must determine what the GST status of a product is. Where certain products are GST-free in most but not all States, the wholesaler should take the location of sale into account if they take it upon themselves to advise the GST status of products.