ATO Interpretative Decision
ATO ID 2002/116
Goods and Services Tax
GST and baguettesFOI 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 supplies baguettes?
Decision
Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies baguettes.
Facts
The entity is a food supplier.
The entity supplies uncooked frozen baguettes. The baguettes are a type of long thin bread roll, that do not have a sweet filling or coating.
The entity is registered for goods and services tax (GST).
Reasons for Decision
A supply of food is GST-free under section 38-2 of the GST Act if the product satisfies the definition of food in section 38-4 of the GST Act and the supply is not excluded from being GST-free by section 38-3 of the GST Act.
Food is defined in section 38-4 of the GST Act to include food for human consumption (paragraph 38-4(1)(a) of the GST Act). Baguettes are a type of bread stick or long bread roll. Baguettes are food for human consumption and, therefore, satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act.
However, paragraph 38-3(1)(c) of the GST Act, provides that 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). Baguettes are not food of a kind listed in Schedule 1.
In addition, the baguettes do not fall within any of the other exclusions in section 38-3 of the GST Act. Therefore, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies baguettes.
Date of decision: 7 November 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
section 38-2
section 38-3
paragraph 38-3(1)(c)
section 38-4
paragraph 38-4(1)(a)
Schedule 1 clause 1
Keywords
Goods & services tax
GST free
GST food
Food for human consumption
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 7 November 2001 | Original statement |
| 21 October 2005 | Archived |