• 3.h. If drugs and medicines sold by Chinese herbalists are added to Schedule 1 of the Standard for the Uniform Scheduling of Medicines and Poisons, will supplies of such products be GST-free?

    Non-interpretative – straight application of the law.

    Subsection 38-50(2) provides that supplies of drugs and medicines are GST-free if, under the State or Territory law applicable to where the supply is made, the supply of that drug or medicine to an individual for private or domestic use or consumption is restricted but may be made by a medical practitioner, dental practitioner, pharmacist or any other person permitted by or under that law to do so.

    The primary mechanism for restricting access of drugs and medicinal preparations is through 'scheduling'. Scheduling is the grouping of products containing specified substances into schedules representing levels of restriction on distribution. Scheduling decisions are made by the Secretary to the Department of Health and Ageing in consultation with the Advisory Committee on Medicines Scheduling (ACMS) and the Advisory Committee on Chemicals Scheduling (ACCS)External Link and published as the Standard for the Uniform Scheduling of Medicines and Poisons (SUSMP), which is generally adopted by the States and Territories.

    Supplies of such products will be GST-free, provided the provisions of the SUSMP dealing with Schedule 1 substances are amended and adopted under the relevant State or Territory law where the supply is made, or, the State or Territory law applicable to where the supply is made has separate legislation restricting supplies of drugs or medicines of that kind.

      Last modified: 02 Apr 2014QC 16333