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Edited version of private advice
Authorisation Number: 1052042408517
Date of advice: 7 October 2022
Ruling
Subject: GST and supply of frozen fruits
Question 1
Is the supply of the Product by the entity GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, the supply of the Product is GST-free under section 38-2 of the GST Act.
The supply of the Product is GST-free under section 38-2 of the GST Act because:
• the Product is food for human consumption
• the Product is not food of a kind listed in item 29 and 31 of Schedule 1 to the GST Act, and
• the supply the Product does not fall within any of the other exclusions in section 38-3 of the GST Act.
Question 2
Is the importation of the frozen fruits by a non-taxable importation under paragraph 13-10(b) of the GST Act?
Answer
Yes.
The importation of the frozen fruits is a non-taxable importation under paragraph 13-10(b) of the GST Act because, had it been a supply, it would have been a GST-free supply
Relevant facts and circumstances
The entity is registered for GST.
The entity imports frozen cut up fruits into Australia in bulk.
The fruits are re-packed and supplied to a retailer in resealable bags (the Product).
The Product is 100% cut up fruits.
The Product must be kept frozen and stored at below minus 18°C. Once thawed, it must be refrigerated below 5°C and used within 2 to 3 hours.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999, section 13-10
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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