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Edited version of private advice
Authorisation Number: 1051738423430
Date of advice: 13 August 2020
Ruling
Subject: GST and supply of spread
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
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)(e) of the GST Act as 'goods to be mixed with or added to food for human consumption' and
- the supply of the Product does not fall within any exclusion in section 38-3 of the GST Act.
Relevant facts and circumstances
You sell the Product in Australia and you are registered for GST.
The Product is made of plant-based ingredients.
The Product can be spread on bread, crackers and stirred though a desired dish or served with a meal.
It is supplied in a jar of a specific weight.
You provided pictures of the Product, the label and a promotional flyer used for marketing purposes.
The product is prepared by creating a cold paste from blending the ingredients. The contract manufacturer is in Australia.
The Product is promoted on your website and social media accounts.
The Product is sold online and in various specialty retail stores.
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 section 38-4
A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-4(1)(e)
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