| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051357315831
Date of advice: 12 April 2018
Ruling
Subject: GST and burger kit
Question
Is the supply of the Product GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
The supply of the Product is GST-free under section 38-2 of the GST Act because:
● the Product is food for human consumption and therefore satisfies the definition of food (paragraph 38-4(1)(a) of the GST Act) and
● the supply of the Product does not fall within any of the exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You are a food retailer and are registered for GST.
The Product is a frozen burger kit. The burger kit consists of uncooked patty, bun and sautéed onion. The kit is sold as a frozen product.
The burger patty in the kit is raw and needs to be cooked before consumption. The bun is cooked but needs to be placed in the oven to reheat.
The Product is sold locally to retailers.
The Product is consumed by individuals/households at home.
You provided a picture of a packaging which contains the following information:
● The box contains:
A number of patties
A number of buns
A certain weight of sautéed onion
● Ingredients of the beef patty, bun and sautéed onion
● Storage
Keep frozen at or below a certain temperature. Once thawed, do not refreeze. Consume within a few days of thawing.
● Preparation
● The patty needs to be fried for a certain time.
● The bun has to be cooked in an oven at a certain temperature for a certain time.
● Assemble the patty with the bun adding some sautéed onion
● The box also contains recipe suggestions.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 38-2
A New Tax System (Goods and Services Tax) Act 1999 section 38-3
A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-3(1)(c)
A New Tax System (Goods and Services Tax) Act 1999 section 38-4
A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-4(1)(a)
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, Clause 1, table, item 4
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, Clause 1, table, item 6
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1 clause 2
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1 clause 3
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
