ATO Interpretative Decision
ATO ID 2004/537 (Withdrawn)
Goods and Services Tax
GST and green barley powderFOI status: may be released
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This ATO ID is withdrawn as the Tax Office position on this issue is contained in the current GST Food Guide (NAT 3338)This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 12 December 2008
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 green barley powder?
Decision
Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells green barley powder.
Facts
The entity is a food supplier. The entity sells green barley powder. Green barley powder is a vegetable product consisting of dried and crushed young barley plants. It is supplied for consumption by sprinkling on food or adding to liquids.
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 (whether or not requiring processing or treatment) (paragraph 38-4(1)(a) of the GST Act). Although green barley powder is sometimes used as an ingredient in food or consumed by adding to a beverage, it is generally supplied as a food in its own right and therefore satisfies the definition of food in paragraph 38-4(1)(a) of the GST Act.
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). Green barley powder is not food of a kind specified in Schedule 1.
The supply of green barley powder does 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 sells green barley powder.
Date of decision: 20 December 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
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 and services tax
GST free
GST food
Food for human consumption
Ingredients for food
ISSN: 1445-2782
| Date: | Version: | |
| 20 December 2001 | Original statement | |
| You are here → | 12 December 2008 | Archived |