ATO Interpretative Decision
ATO ID 2001/177 (Withdrawn)
Goods and Services Tax
GST and yoghurtFOI status: may be released
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The ATO view for is covered in the 'GST food guide - Part 3 - Detailed food list'.This 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 sells yoghurt (with or without fruit)?
Decision
Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells yoghurt (with or without fruit).
Facts
The entity is a food supplier that sells yoghurt (with and without fruit). The entity is registered for goods and services tax (GST).
The yoghurts (with and without fruit) are the variety to be consumed with a spoon. The real fruit is added prior to packaging.
The yoghurts are not supplied for consumption on the premises from which they are supplied.
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.
The term '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, yoghurt (with or without fruit) is 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 a combination of foods specified in clause 1 to Schedule 1 of the GST Act (Schedule 1). Yoghurt (with or without fruit) is not a food of a kind specified in Schedule 1.
In addition, the supply of the yoghurt does not fall within any of the other exclusions listed in section 38-3 of the GST Act. Therefore, the supply of yoghurt (with or without fruit) is GST-free under section 38-2 of the GST Act.
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
ATO ID 2001/175
ATO ID 2001/176
Keywords
Goods & services tax
GST free
GST food
Food for human consumption
ISSN: 1445-2782
| Date: | Version: | |
| 21 February 2001 | Original statement | |
| You are here | 2 September 2005 | Archived |