2.c.1. What is the GST status for goods supplied by herbalists and naturopaths, which are for consumption off the premises or are only partially consumed on the premises at the time of treatment?
For source of ATO view, refer to issue 2.c of this issues register.
In accordance with section 38-10(4), the goods supplied must be completely used or consumed at the premises at which the service is supplied. If a supply of goods is used or consumed at a place other than the premises where the GST-free service is supplied then section 38-10(4) will not be satisfied. If the goods are only partially consumed, the goods have not been ‘used or consumed at the premises’ and only that portion consumed at the premiseswill be GST-free in accordance with section 38-10(4).