Ingredients for beverages
What is an ingredient for a beverage?
Non-interpretative - straight application of the law.
The term 'ingredients for beverages for human consumption' (paragraph 38-4(1)(d)) is not limited except in that the ingredients must be for beverages for human consumption.
However, ingredients for beverages for human consumption are only GST-free to the extent that the ingredients are specified in the third column of Schedule 2 in accordance with paragraph 38-3(1)(d) of the Act.
Sammy's Supermarkets sell a strawberry flavoured dry preparation that is used for flavouring milk. The sale of this dry preparation will be GST-free in accordance with clause 1, item 9 of Schedule 2. Products that are not included on Schedule 2 will not be GST-free as an ingredient for beverages for human consumption, however they may still be GST-free under one of the other provisions in section 38-4.
End of example