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Edited version of private advice

Authorisation Number: 1051825784204

Date of advice: 22 April 2021

Ruling

Subject: GST on the supply of spring rolls and dumplings

Question

Is the supply of the spring rolls and the dumplings (the Products) 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 Products is GST-free under section 38-2 of the GST Act because:

•         the Products satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption; and

•         the supply of the Products does not fall within any other exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances

You import the Products and sell to supermarkets.

You are registered for GST.

You provided the following information about the Products:

Spring Rolls:

•         manufactured pre-fried and then frozen

•         not ready for immediate consumption

•         needs to be oven baked prior to consumption

•         sold in frozen condition in supermarkets

•         can be enjoyed anytime - serve as an appetiser at parties or as a snack

•         cook from frozen by either oven baking or deep-frying (must be cooked prior to consumption)

Dumplings:

•         manufactured pre steamed and then frozen

•         not ready for immediate consumption

•         needs to be fried or steamed prior to consumption

•         sold in frozen condition in supermarkets

•         delicately wrapped dumplings, brimming with flavour of fresh vegetables

•         cook from frozen by either frying or steaming (must be cooked prior to consumption)

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 Schedule 1, Clause 1, table.

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