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Edited version of private advice
Authorisation Number: 1051842839920
Date of advice: 28 May 2021
Ruling
Subject: GST and food
Question
Is the supply of the specified food products (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 (whether or not requiring processing or treatment), and
- the supply of the Products does not fall within any of the exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You produce a wide variety of food products.
You are registered for GST.
The Products are smallgoods pieces that are supplied in a resealable plastic bag. The Products are currently sold in a particular packet size. You are looking to expand the range to include smaller and larger packets as well.
You provided details about the Products, including the ingredients list, nutritional information, images of the packaging, manufacturing process and marketing information.
The Products are not cooked. The Products have a firm, chewy texture.
The Products are not refrigerated.
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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