| Disclaimer This edited version has been archived due to the length of time since original publication.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 private advice
Authorisation Number: 1051707820589
Date of advice: 2 July 2020
Ruling
Subject: GST and food
Question 1
Is the supply of the specified range of food products (the Products) GST-free pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
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.
The supply of the Products is GST-free under section 38-2 of the GST Act because:
- the Products satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption
- the Products are not food of a kind marketed as a prepared meal under item 4 in the table in clause 1 of Schedule 1 to the GST Act, as they do not require refrigeration or freezing for their storage, and
- the supply of the Products does not fall within any other exclusions in section 38-3 of the GST Act.
Question 2
Is the importation of the Products a non-taxable importation under paragraph 13-10(b) of the GST Act?
Answer
Yes.
Under paragraph 13-10(b) of the GST Act, an importation is classed as a non-taxable importation if it would have been a supply that was GST-free or input taxed, if it had been a supply.
The importation of the Products is a non-taxable importation under paragraph 13-10(b) of the GST Act because, as outlined in Question 1, the supply of the Products is GST-free.
Relevant facts and circumstances
You sell the Products.
You are registered for GST.
The Products are made from specified ingredients. The Products do not require refrigeration or freezing for their storage. They are sold in retort packets and stored on the shelf as ambient products. The Products can be eaten as a side or a main meal. They are sold through retail stores.
You provided pictures of the packaging of the Products which include the following information:
- The Products come in different flavours.
- The Products can be eaten cold or hot. To eat cold, they just need to be opened and served. They can be heated in the microwave or on the stove for a specified time.
- The Products can be eaten as a side or as a main meal.
- The Products are made outside Australia.
You provided a copy of the manufacturer's declaration used for importation purposes, which describes the process of manufacture.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 13-5.
A New Tax System (Goods and Services Tax) Act 1999 Paragraph 13-10(b).
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 item 4.
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).
