ATO Interpretative Decision

ATO ID 2001/269

Goods and Services Tax

GST and Crumpets
FOI status: may be released

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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 crumpets?

Decision

Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells crumpets.

Facts

The entity is a food supplier. The entity supplies crumpets.

The crumpets are not supplied for consumption on the premises from which they are supplied. The entity does not supply the crumpets as hot food for consumption away from those premises.

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 provided that it does not come within any of the exclusions listed in section 38-3 of the GST Act.

Food is defined in paragraph 38-4(1)(a) of the GST Act to include food for human consumption (whether or not requiring processing or treatment). Crumpets are considered to be food for human consumption.

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 that is specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1). Crumpets are not specifically listed in Schedule 1, nor are they food of a kind specified in Schedule 1.

In addition, the supply of crumpets 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 of crumpets under section 38-2 of the GST Act.

Date of decision: 16 March 2000

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 38-2
   section 38-3
   paragraph 38-3(1)(c)
   paragraph 38-4(1)(a)
   Schedule 1 clause 1
   Schedule 1

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

Business Line: GST

Date of publication: 8 September 2001

ISSN: 1445-2782

history

	Date:	Version:
You are here	16 March 2000	Original statement
	13 September 2005	Archived

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