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ATO Interpretative Decision

ATO ID 2001/176 (Withdrawn)

Goods and Services Tax

GST and Cheeses
FOI status: may be released
CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 cheeses packaged in various forms, other than platters or similar arrangements?

Decision

Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies cheeses packaged in various forms, other than platters or similar arrangements.

Facts

The entity is a food supplier. The entity supplies cheeses packaged in various forms.

The cheeses are supplied in blocks, and are packed in various forms including shrink wrap and containers.

The cheeses are not supplied in the form of a platter or similar arrangement.

The cheeses are not sold for consumption on the premises from which they are supplied.

The entity is registered for goods and services tax (GST).

Reasons For Decision

Generally, a supply of food is GST-free under section 38-2 of the GST Act provided that the supply does not come within any of the exclusions listed in 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). In this case, cheeses packed in various forms are considered to be food for human consumption.

In accordance with section 38-3 of the GST Act, some foods are not GST-free. This includes food or combinations of food specified in clause 1 of Schedule 1 of the GST Act (Schedule 1). Cheeses supplied in the form of a platter or similar arrangement are specifically listed in item 5 of Schedule 1. However, cheeses supplied in the form of blocks and packed in shrink wrap or containers are not specifically included in Schedule 1. In this case, the cheeses are not supplied in the form of a platter or similar arrangement, and therefore, are not covered by item 5 of Schedule 1.

In addition, the supply of cheeses in the form of blocks and packed in shrink wrap or containers does not fall within any of the other exclusions listed 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.

[Note: Where cheeses are individually cubed or sliced into bite size pieces and presented as a platter or a similar arrangement, the supply is not GST-free in accordance with item 5 of Schedule 1.]

Date of decision:  21 February 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 38-2
   section 38-3
   section 38-4
   Schedule 1, clause 1
   Schedule 1, clause 1,item 5

Related ATO Interpretative Decisions
ATO ID 2001/175
ATO ID 2001/177

Keywords
Goods & services tax
GST free
GST food
Food for human consumption

Date of publication:  10 August 2001

ISSN: 1445-2782

history
  Date: Version:
  21 February 2001 Original statement
You are here 26 August 2005 Archived

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