ATO Interpretative Decision

ATO ID 2001/570 (Withdrawn)

Goods and Services Tax

GST and soy-based cream cheese
FOI status: may be released

The ATO view 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.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 sells soy-based cream cheese?

Decision

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

Facts

The entity is a food supplier. The entity is selling soy-based cream cheese. The soy-based cream cheese is not consumed on the premises from which it is supplied.

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

Reasons for Decision

A supply of food is GST-free pursuant to 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'. Soy-based cream cheese is 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 specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1).

Soy-based cream cheese is not food of a kind specified in Schedule 1. Furthermore, none of the other exclusions contained in section 38-3 of the GST Act apply.

Therefore, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells soy-based cream cheese.

Date of decision: 23 August 2001

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
   Schedule 1 clause 1

Related ATO Interpretative Decisions
ATO ID 2001/568
ATO ID 2001/569

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

Business Line: GST

Date of publication: 7 November 2001

ISSN: 1445-2782

history

	Date:	Version:
	23 August 2001	Original statement
You are here	30 September 2005	Archived

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