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Edited version of private advice
Authorisation Number: 1051793251672
Date of advice: 27 January 2021
Ruling
Subject: Goods and services tax classification of fruit snacks
Question
Is the supply of the fruit leather (the Product) 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.
In this case, 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 exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You have a food and beverage business and as part of this business imports the Product.
You are not currently registered for GST in Australia.
The Product is fruit leather made of 100% natural fruit pulps and purees which is air-dried.
The Product which is available as a bar and strip.
The colour, taste and smell of the food item varies depending on flavour. The texture of the Product is soft to chewy.
The provided the process flow diagram for the Product:
You provided samples of the Product. The labels include the following information:
100% fruit leather
No Added Sugar
No Preservatives
Gluten Free
Not from Concentrate
The ingredients list show that each flavour is made from a number of fruits with a total fruit content of 100%.
The Product is marketed on your social media accounts and you provided samples of marketing material which shows that the Product is made of 100% fruit.
The Product is sold in selected retail and health food stores.
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