Q: The ATO says bottled water is GST-free, and fruit/vegetable juices are GST-free if they're over 90% pure. Peggy sells bottled juices in her café, where most customers dine in, but some also take away drinks. She wants to know if she should charge GST on bottled drinks.
A: The ATO says most food and drinks sold in cafes are taxable, even if people eat them off-premises. So, Peggy should charge GST on all bottled drinks she sells, whether customers drink them in the café or take them away.
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