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Edited version of private advice

Authorisation Number: 1051714924634

Date of advice: 31 July 2020

Ruling

Subject: GST and food

Question

Is the supply of the Products GST-free under 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, and

·                     the supply of the Products does not fall within any exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances

You will start production of the Products on an industrial scale.

You are registered for GST.

You provided a brochure of the Products which includes the following information:

·                     ingredients of each variety in the range

·                     sample of the recipes

·                     manufacturing process, and

·                     size, weight and packaging.

The Products are uncooked and must be cooked to become edible.

After the production, you freeze the Products or deliver fresh daily to the hospitality industry. You will sell the Products to retailers, snack bars, hotels and restaurants.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999section 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 Schedule 1, Clause 1.

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