ATO Interpretative Decision

ATO ID 2002/539 (Withdrawn)

Goods and Services Tax

GST and the supply of miso paste
FOI status: may be released
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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 miso paste?

Decision

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

Facts

The entity is a food supplier. The entity supplies miso paste.

Miso paste is a traditional Japanese food. It is a naturally fermented savoury paste which is made from soybeans or other vegetable proteins like chickpeas, salt, and grain (i.e. rice, barley, wheat or corn). Miso paste is a vegetable source of vitamin B12 and is ideal for vegetarians. It is supplied as an ingredient that can be added to various dishes. It is used as a food condiment or seasoning and is added to soups, dressings, dips, spreads and sauces.

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 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 ingredients for food for human consumption (paragraph 38-4(1)(b) of the GST Act). Miso paste is supplied as an ingredient that can be added to various dishes and is used as a seasoning in soups, dressings, dips, spreads and sauces. Accordingly, the miso paste is an ingredient for food for human consumption and, therefore, satisfies the definition of food in paragraph 38-4(1)(b) of the GST Act.

However, paragraph 38-3(1)(c) of the GST Act provides that 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). Miso paste is not food of a kind listed in Schedule 1.

In addition, miso paste 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 under section 38-2 of the GST Act when it supplies miso paste.

Date of decision:  2 April 2002

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

Keywords
Goods & services tax
GST free
GST food
Food seasoning
Ingredients for food

Business Line:  GST

Date of publication:  31 May 2002

ISSN: 1445-2782

history
  Date: Version:
  2 April 2002 Original statement
You are here 5 December 2008 Archived

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