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Edited version of private advice

Authorisation Number: 1051720885266

Date of advice: 24 July 2020

Ruling

Subject: GST and food

Question

Is the supply of the nuts 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 nuts is GST-free under section 38-2 of the GST Act because:

Relevant facts and circumstances

You carry on a primary production business growing nuts.

You are registered for GST.

The nuts in shell are sold to a processor.

You do not process the nuts in any way prior to sale and they are packaged in large bins for transport to the processor.

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, table.

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