• Flow chart: Beverages

    1. Is the product unprocessed cows milk?

    Unprocessed cows milk is taxable because it is not considered to be a beverage for GST purposes.

    Yes

    Taxable

    No

    Go to question 14

    1. Is the product sold for consumption on the premises or as a take-away hot drink?

    Drinks like milkshakes, coffee and other drinks delivered in a glass, cup or other in-house container are taxable.

    Hot drinks like coffee, hot chocolate, tea and other hot beverages taken away from the premises are also taxable.

    Yes

    Taxable

    No

    Go to question 15

    1. Is the product an unflavoured milk product?

    Most processed milk beverages are GST-free, provided they are not flavoured. They can be supplied GST-free in liquid, powdered, concentrated or condensed forms.

    Processed milk beverage products also covers buttermilk, casein, whey and lactose.

    Yes

    GST-free

    No

    Go to question 16

    1. Is the product an unflavoured soy milk or rice milk product?

    Soy milk or rice milk beverages are GST-free, provided they are not flavoured.

    Yes

    GST-free

    No

    Go to question 17

    1. Is the product tea, coffee or similar product?

    Tea, coffee, coffee essence, chicory, chicory essence and malt that can be used to make a beverage are GST-free. This includes products that are marketed principally as tea, coffee and malted beverage preparations. Preparations marketed as substitutes for tea, coffee and malted beverage preparations are also GST-free (for example, hot chocolate and drinking chocolate preparations).

    Tea, coffee and similar products marketed in ready-to-drink form are taxable.

    Yes

    GST-free

    No

    Go to question 18

    1. Is the product a fruit or vegetable juice?

    Most fruit and vegetable juices are GST-free provided they contain at least 90% by volume of fruit or vegetable juice.

    There are exceptions:

    • fruit juice concentrates marketed for making alcoholic drinks
    • non-alcoholic carbonated juices that are not 100% juice.

    Yes

    GST-free

    No

    Go to question 19

    1. Is the product a beverage for infants and invalids?

    Beverages for infants and invalids are GST-free if they are marketed principally for infants and invalids.

    Yes

    GST-free

    No

    Go to question 20

    1. Is the product natural, non-carbonated water?

    Non-carbonated packaged water is GST-free if it does not contain additives or flavourings. This includes non-carbonated mineral water.

    Yes

    GST-free

    No

    Taxable

    Find out more

    If you’re still unsure, whether GST applies to your food item, phone us (refer to How we can help).

    End of find out more
      Last modified: 05 Aug 2016QC 16413