ATO Interpretative Decision

ATO ID 2002/526 (Withdrawn)

Goods and Services Tax

GST and homeopathic medicines
FOI status: may be released

This ATO ID is withdrawn as it is a straight application of the law and does not contain an interpretative decision.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is the entity, a homeopath, making a GST-free supply under Subdivision 38-B of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it supplies herbal formulas and homoeopathic remedies during a homeopathic service?

Decision

No, the entity is not making a GST-free supply under Subdivision 38-B of the GST Act when it supplies herbal formulas and homoeopathic remedies during a homeopathic service. The entity is making a taxable supply under section 9-5 of the GST Act.

Facts

The entity is a homeopath. The entity supplies herbal formulas and homeopathic remedies during a homeopathic service.

The homeopathic service is not a GST-free supply of a health service under subsection 38-10(1) of the GST Act.

The supplies are not covered by subsections 38-7(3) and 38-20(3) or sections 38-47 and 38-50 of the GST Act.

The entity is registered for goods and services tax (GST). The supply satisfies the other positive limbs of section 9-5 of the GST Act.

Reasons for Decision

A supply of goods such as herbal formulas and homeopathic remedies in the course of supplying a health service, is GST-free if the supply satisfies either subsection 38-10(3) or 38-10(4) of the GST Act.

For the supply of goods to be GST-free under subsection 38-10(3) or 38-10(4) of the GST Act, one of the requirements is that the goods must be supplied to an individual in the course of supplying to that individual a GST-free health service. A health service is GST-free if it satisfies the requirements of subsection 38-10(1) of the GST Act.

The entity is not supplying a health service that is GST-free under subsection 38-10(1) of the GST Act. Therefore, the supply of herbal formulas and homeopathic remedies does not satisfy either subsection 38-10(3) or subsection 38-10(4) of the GST Act.

The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under any other provisions in Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies herbal formulas and homeopathic remedies during the course of a homeopathic service.

Date of decision: 16 November 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 9-5
   Division 38
   subsection 38-7(3)
   subsection 38-20(3)
   subsection 38-10(1)
   subsection 38-10(3)
   subsection 38-10(4)
   section 38-47
   section 38-50
   Division 40

Keywords
Goods & services tax
GST health
Section 38-10 - other health services
Section 38-50 - drugs & medicinal preparations
GST supplies & acquisitions
Taxable supply

Business Line: GST

Date of publication: 31 May 2002

ISSN: 1445-2782

history

	Date:	Version:
	16 November 2001	Original statement
You are here	22 June 2007	Archived

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