Goods and Services Tax Industry Issues
Health Industry Partnership

Additional requirement for goods supplied 'in the course of supplying' a GST-free 'other health service' (herbal medicine and naturopathy only)

• Please note that the PDF version is the authorised version of this ruling.
  This publication is extracted from the Health Industry Partnership - issues register. See issue 2.c of that register. This publication should be read in conjunction with the related content of that register where further context is required.

This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.

1. The phrase 'it is supplied, and used or consumed, at the premises at which the service has been supplied' appears in section 38-10(4)(b) which is an additional second element of the section and must be read together with the first element in section 38-10(4)(a). Section 38-10(4) relates only to supplies of goods made to a person in the course of supplying Herbal medicine or Naturopathy services as referred to in item 8 and 9 of the table in section 38-10(1).

2. It is considered that 'used' in this context means 'completely used or exhausted' at the premises and 'consumed' in this context means 'completely consumed or ingested' at the premises. If the goods are only partially used or consumed at the premises, it is considered that only that portion used or consumed at the premises will satisfy section 38-10(4).

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