Some GST-free food products have alternative non-food uses.
The supplier must work out whether the item is for human consumption (GST-free) or is a non-food product (taxable). You can work this out by considering the:
- physical product
- nature of the sale.
For example, you might decide a food product is for non-food use because the product is:
- called something other than food
- stored in conditions or containers that are not suitable for food
- packaged in a non-food type package or container
- labelled, invoiced or marketed as a non-food product
- delivered in a way not suitable for food.
Example: food product with an alternative (non-food) use
Vinegar sold as a condiment is GST-free as it is added to food for human consumption. Vinegar sold as a household cleaner is not GST-free because it is not a sale of food for human consumption.End of example
Snack packs can contain a combination of GST-free and taxable goods. How you treat them for GST purposes depends on their contents and packaging.
Example: snack packs
Where a GST-free food item is packaged together with a taxable food item (for example, cheese and biscuits) as a snack pack, it is subject to GST. The snack pack is taxable as the items are packaged together, marketed and sold as a single product.End of example
Where a mix of GST-free and taxable individually packaged goods is packed and sold together (such as a hamper containing a packet of biscuits, a box of chocolates, a coffee cup and a jar of coffee), you tax these items individually as a mixed sale. The biscuits, chocolates and cup are taxable and the coffee is GST-free.
A hamper can be a basket, decorative box or other similar container holding any number of separately identifiable products. If the hamper has packaging that has a lasting value (for example, a picnic basket), the sale of the packaging is subject to GST.
For more information see food packaging.
Food past its use-by date is not automatically unfit for human consumption but you can use the use-by date as a guide to work out whether the food is suitable for human consumption.
If the food is not safe for human consumption, it is not considered food under GST law and is taxable.