ATO Interpretative Decision
ATO ID 2002/81 (Withdrawn)
Goods and Services Tax
GST and fresh fruit and vegetable juice drinkFOI status: may be released
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The ATO view for this issue is covered in Goods and Service Tax Determination GSTD 2002/2This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 a fresh fruit and vegetable juice drink?
Decision
Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies a fresh fruit and vegetable juice drink.
Facts
The entity is a food supplier. The entity is supplying a fresh fruit and vegetable juice drink that contains more than 90% of juices of fruits or vegetables by volume. The fresh fruit and vegetable juice drink is non-alcoholic, non-carbonated and 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 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 beverages for human consumption (paragraph 38-4(1)(c) of the GST Act). Fresh fruit and vegetable juice drink is a beverage for human consumption.
However, under paragraph 38-3(1)(d) of the GST Act, beverages are only GST-free if they are specified in the table in clause 1 of Schedule 2 to the GST Act (Schedule 2).
Item 12 in Schedule 2 (Item 12) lists non-alcoholic non-carbonated beverages, if they consist of at least 90% of juices of fruits or vegetables by volume.
The fresh fruit and vegetable juice drink is non-alcoholic, non-carbonated and consists of at least 90% of juices of fruits or vegetables by volume. Therefore, the product is covered by Item 12.
Furthermore, as the fresh fruit and vegetable juice drink is not consumed on the premises from which it is supplied, the supply is not excluded from being GST-free under paragraph 38-3(1)(a) of the GST Act; nor is the supply excluded from being GST-free under any other of the paragraphs 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 the fresh fruit and vegetable juice drink.
Date of decision: 22 November 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 38-2
section 38-3
paragraph 38-3(1)(a)
paragraph 38-3(1)(d)
section 38-4
paragraph 38-4(1)(c)
Schedule 2 clause 1
Schedule 2 clause 1 table item 12
Keywords
Goods & services tax
GST free
GST food
GST beverages
ISSN: 1445-2782
| Date: | Version: | |
| 22 November 2001 | Original statement | |
| You are here | 21 October 2005 | Archived |