ATO Interpretative Decision
ATO ID 2004/495 (Withdrawn)
Goods and Services Tax
GST and chicken sausage rollFOI status: may be released
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The ATO view on this issue is covered in the GST Food Guide - Part 3 - Detailed food list - Sausage rolls.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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 chicken sausage rolls?
Decision
No, the entity is not making a GST-free supply under section 38-2 of the GST Act when it sells chicken sausage rolls. The entity is making a taxable supply under section 9-5 of the GST Act.
Facts
The entity is a food supplier. The entity supplies uncooked frozen chicken sausage rolls.
The chicken sausage roll consists of raw minced chicken meat (plus salt, herbs, and spices) that is rolled up and wrapped in a sheet of puff pastry. Both ends of the chicken sausage roll are open with the chicken meat filling visible.
The entity is registered for goods and services tax (GST) and the supply satisfies the other positive limbs of section 9-5 of the GST Act.
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). Chicken sausage rolls are food for human consumption 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 a food of a kind specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1).
Item 22 in Schedule 1 (Item 22) lists 'pies (meat, vegetable or fruit), pasties and sausage rolls'.
The chicken sausage roll consists of raw minced chicken meat (plus salt, herbs, and spices) that is rolled up and wrapped in a sheet of puff pastry. Both ends of the chicken sausage roll are open with the chicken meat filling visible. As such, the chicken sausage roll is a kind of sausage roll. Therefore, the chicken sausage roll is covered by Item 22 and is excluded from being GST-free by paragraph 38-3(1)(c) of the GST Act.
The entity is registered for GST and the supply satisfies the other positive limbs of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under any other provision of Division 38 of the GST Act nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act when it supplies chicken sausage rolls.
Date of decision: 19 March 2003
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
Division 38
section 38-2
section 38-3
paragraph 38-3(1)(c)
section 38-4
paragraph 38-4(1)(a)
Division 40
Schedule 1 clause 1
Schedule 1 clause 1 table item 22
Keywords
Goods and services tax
GST free
GST food
Bakery products
Food for human consumption
GST supplies & acquisitions
Taxable supply
ISSN: 1445-2782
| Date: | Version: | |
| 19 March 2003 | Original statement | |
| You are here | 11 November 2005 | Archived |