How a product is marketed affects its GST classification
The way food items are marketed affects their GST classification. Marketing includes:
- how goods are promoted and advertised
- the labelling (including the name), instructions, packaging, display and placement of the goods in the store.
Products that are GST-free
The following kinds of products are GST-free:
- malt extract marketed principally mainly for drinking
- preparations that are marketed principally as tea, coffee, or malted beverages
- preparations marketed principally as substitutes for tea, coffee or malted beverages
- dry preparations marketed to flavour milk
- beverages and ingredients for beverages marketed principally as food for infants or invalids.
Products that are taxable
The following kinds of products are subject to GST:
- food marketed as confectionery
- food marketed as a prepared meal, excluding soup.
For more information, see Goods and Services Tax Determination GSTD 2025/1 Goods and services tax: supplies of food of a kind marketed as a prepared meal.