ATO Interpretative Decision

ATO ID 2004/752 (Withdrawn)

Goods and services tax

GST and glutinous rice balls with sweet filling
FOI status: may be released

Withdrawn. The ATO view for this issue is covered in the GST food guide - Section 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 supplies glutinous rice balls with sweet filling?

Decision

Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies glutinous rice balls with sweet filling.

Facts

The entity is a food supplier. The entity supplies glutinous rice balls with sweet filling. The ingredients of the rice balls are glutinous rice (sticky rice), sugar, red beans and vegetable oil.

The rice balls are supplied frozen with instructions for defrosting and cooking. 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 food for human consumption (whether or not requiring processing or treatment)(paragraph 38-4(1)(a)). Glutinous rice balls satisfy the definition of food contained in paragraph 38-4(1)(a) as they are 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 of the GST Act (Schedule 1). Glutinous rice balls are not specified in Schedule 1 nor are they food of a kind specified in Schedule 1.

In addition, the supply of glutinous rice balls 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 glutinous rice balls with sweet filling.

Date of decision: 13 June 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)(a)
   Schedule 1 clause 1

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

Business Line: GST

Date of publication: 10 September 2004

ISSN: 1445-2782

history

	Date:	Version:
	13 June 2002	Original statement
You are here	3 February 2006	Archived

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