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Edited version of private advice

Authorisation Number: 1051834414060

Date of advice: 10 May 2021

Ruling

Subject: GST and food

Question

Is the supply of 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 food is GST-free under section 38-2 of the GST Act if the product satisfies the definition 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)(a) of the GST Act as food for human consumption (whether or not requiring processing or treatment), and

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

Relevant facts and circumstances

You supply the Product.

You are registered for GST.

The Product is a plain bread product.

You provide details about the Product, including the ingredients, manufacturing process, and images of the packaging and food items.

You provided the following preparation options:

Remove the Product from the package - no need to defrost.

•         Deep frying in oil at a particular temperature for a few seconds until golden brown.

•         Put into microwave until cooked. Cooking times may vary depending on the appliance.

•         Steam for a few minutes until fully cooked.

•         Frying in pan for a few minutes.

•         Put into oven when it reaches a particular temperature, cooking time is a few minutes.

The Product is sold in the freezer section of supermarkets.

You provided samples of the Product. The Product is frozen and once cooked becomes soft.

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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