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Edited version of private ruling
Authorisation Number: 1011622054718
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Ruling
Subject: Goods and services tax (GST) and dukkah
Question
Are your supplies of dukkah GST-free?
Answer
Yes. Your supplies of dukkah are GST-free.
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You provided the following facts in your previous ruling application:
· You are registered for GST.
· You supply a food product called dukkah.
· Dukkah is a traditional Egyptian specialty food made of roasted nuts and seeds seasoned with a blend of spices.
· It is normally consumed on flat bread dipped into olive oil to which the dukkah adheres. It may also be used as a food seasoning, sprinkled over salads or coated on meats.
· You produce your own blend of dukkah, which you sell in bags, made up of the following ingredients mixed together: toasted sesame seeds, roasted macadamia nut meal, coriander, cumin, sea salt.
· The coriander, macadamia and cumin are in powder form when mixed in the final product.
· You market dukkah for use as a spicy flavoured dip as well as for sprinkling over food.
Reasons for decision
While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision.
A supply of food is GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (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. 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 that is specified in the table in clause 1 of Schedule 1 to the GST Act
The term food is defined for GST purposes in subsection 38-4(1) of the GST Act as any of, or a combination of any of these:
a) food for human consumption (whether or not requiring processing or treatment)
b) ingredients for food for human consumption
c) beverages for human consumption
d) ingredients for beverages for human consumption
e) goods to be mixed with or added to food for human consumption (including condiments, spices, seasonings, sweetening agents, and flavourings), and
f) fats and oils marketed for culinary purposes.
It is understood that you are supplying your dukkah for human consumption.
You advised that dukkah is a traditional Egyptian specialty food made of roasted nuts and seeds seasoned with a blend of spices. You also advised that your dukkah is normally consumed on flat bread dipped into olive oil to which the dukkah adheres, and that it may also be used as a food seasoning, sprinkled over salads or coated on meats.
Having reviewed the dukkah products, therefore the Taxation office considers that the essential character of your varieties of dukkah is that of a condiment, seasoning or flavouring. As the essential character of your dukkah is that of a condiment, seasoning or flavouring, it is covered by paragraph 38-4(1)(e) of the GST Act, and falls within the definition of food for GST purposes.
Further, the Taxation office also considers that your dukkah is not food of a kind covered by any of the items specified in the table in clause 1 of Schedule 1 to the GST Act. It should be classified as a class or genus of goods in its own right. As such, it is not excluded from being GST-free by section 38-3 of the GST Act.
Therefore your supplies of dukkah are GST-free.
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