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Edited version of private advice
Authorisation Number: 1051998702476
Date of advice: 24 June 2022
Ruling
Subject: GST classification of the food products
Issue
Is a supply of the various food products ('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 are an Australian entity who is registered for GST.
You sell various food products ('Products') in your shop as a takeaway and in Asian supermarkets.
For the takeaway, the customers can order the Products online and can be picked up from the shop or delivered.
You do not supply the Products for consumption on the premises from which they are supplied.
The Products sold in Asian supermarkets are in cold form. All of the cold Products need to be stored in fridge for 4 days or frozen 14 days. The Products are recommended to be served with rice or add to noodle soup, or hotpot.
The Products are marketed as side dish, salad, or add on to your meal.
Frozen wonton can be frozen for couple of months, is recommended to be pan-fried or add to noodle soup or add to hot pot.
The takeaway Products except the wontons are ready to eat and recommended to be heated to get better taste.
You do not supply the Products hot. All the Products are prepacked and cold.
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
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