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Edited version of private advice
Authorisation Number: 1051813119868
Date of advice: 10 March 2021
Ruling
Subject: GST and meals
Question
Is the supply of the Meals 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 Meals is GST-free under section 38-2 of the GST Act because:
• the Meals satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption
• the Meals are not food of a kind marketed as prepared meal under item 4 in the table in clause 1 of Schedule 1 to the GST Act, as they do not require refrigeration or freezing for their storage, and
• the supply of the Meals does not fall within any other exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You sell the Meals which are ready to eat.
The Meals are packed in a sealed pouch of a particular weight. The Meals require heating before consumption. The Meals are not frozen and do not require refrigeration. The Meals have a shelf life of a number of years from production date.
Your GST turnover is under $75,000 and you have not elected to voluntarily register for GST.
You directed us to your website for information about you and your Products as follows:
Your packaging and preservation methods mean that all your meals come with a shelf life of a number of years from manufacturing and do not need any refrigeration.
The Meals are available in different flavours which are either meat-based or plant-based.
The Meals are packed fresh with real ingredients and vacuum sealed ensuring that the Meals taste terrific and retain their freshness over a number of years without refrigeration.
To heat the Meals, you place the pouch in boiling water for a few minutes or pour into a pan over heat stirring until warm.
The Meals can be eaten from the packet or added to your favourite side.
The Meals are sold on your website and also available from selected specialty goods stockists around Australia.
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 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 Paragraph 38-4(1)(a).
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, Clause 1 item 4.
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