• Issue 9

    Fats and oils

    Non-interpretative - straight application of the law.

    'Food' is defined in subsection 38-4(1)(f) of the GST Act to include fats and oils marketed for culinary purposes - paragraph 38-4(1)(f). Therefore, the marketing of the fats and oils will determine their GST status. If the fats and oils are marketed as being for culinary purposes they will satisfy the definition of food in subsection 38-4(1)(f) of the GST Act and will be GST-free.

    Example

    A manufacturer produces peanut oil that is bottled and marketed for use as a cooking oil. This oil will satisfy the definition of food in paragraph 38-4(1)(f) of the GST Act and will be GST-free.

    End of example

     

    Example

    The same manufacturer produces lavender oil that is bottled and marketed as an essential oil for use in aromatherapy. This oil is not marketed for culinary purposes and therefore fails to satisfy the definition of food in subsection 38-4(1) of the GST Act and will be subject to GST.

    End of example
      Last modified: 05 Aug 2016QC 16451