ATO Interpretative Decision
ATO ID 2001/569
Goods and Services Tax
GST and soy-based cheeseFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a food supplier, making a GST-free supply under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it sells soy-based cheese?
Decision
Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells soy-based cheese.
Facts
The entity is a food supplier. The entity is selling soy-based cheese. The soy-based cheese is not consumed on the premises from which it is supplied.
The entity is registered for goods and services tax (GST).
Reasons for Decision
A supply of food is GST-free pursuant to section 38-2 of the GST Act, provided that it does not come within any of the exclusions listed in section 38-3 of the GST Act.
Food is defined in paragraph 38-4(1)(a) of the GST Act to include 'food for human consumption'. Soy-based cheese is food for human consumption.
However, under paragraph 38-3(1)(c) of the GST Act, a supply of food is not GST-free if it is food of a kind specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1).
Soy-based cheese is not food of a kind specified in Schedule 1. Furthermore, none of the other exclusions contained in section 38-3 of the GST Act apply.
Therefore, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells soy-based cheese.
Date of decision: 23 August 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 38-2
section 38-3
paragraph 38-3(1)(c)
paragraph 38-4(1)(a)
Schedule 1
Schedule 1 clause 1
ATO ID 2001/568
ATO ID 2001/570
Keywords
Goods & services tax
GST-free
GST food
Food for human consumption
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 23 August 2001 | Original statement |
| 23 September 2005 | Archived |