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Edited version of private advice
Authorisation Number: 1051719839336
Date of advice: 15 July 2020
Ruling
Subject: GST and supply of food
Question 1
Is the supply of the Product GST-free pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer 1
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 Product is GST-free under section 38-2 of the GST Act because:
- the Product satisfies the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption and
- the supply of the Product does not fall within any other exclusions in section 38-3 of the GST Act.
Question 2
Is the importation of the Product a non-taxable importation under paragraph 13-10(b) of the GST Act?
Answer 2
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 Product is a non-taxable importation under paragraph 13-10(b) of the GST Act because, as outlined in Question 1, the supply of the Product is GST-free.
Relevant facts and circumstances
You will import and sell the Product in Australia.
The Product is food but can also be used for non-food purposes.
You provided a picture of the Product and the packaging includes the following information:
- Organic 100% biodegradable
- Ingredients: a particular type of grain
- Cook for several minutes in the water if used as a food.
- The particular weight in grams
- Keep in a fresh and dry place, away from heat and light sources.
- Made outside Australia.
The Product will be sold in organic shops, markets, independent supermarkets and to restaurants and cafes.
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 Section 38-4.
A New Tax System (Goods and Services Tax) Act 1999 Paragraph 38-4(1)(a).
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