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Edited version of private advice
Authorisation Number: 1051833822093
Date of advice: 11 May 2021
Ruling
Subject: GST and food
Question
Is the supply of 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 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)(b) of the GST Act as an ingredient for 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 will supply the Products.
You are registered for GST.
The Product is flavoured, dry sugars made from castor sugar mixed with other powders and spices. The Products have nothing artificial.
You provided details about the Products including the available flavours and the ingredients.
The Product is sold wholesale in clear pouches.
The Product is manufactured by blending the ingredients in a large mixer then packaging.
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
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