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Edited version of private advice
Authorisation Number: 1052110861833
Date of advice: 28 April 2023
Ruling
Subject: GST and supply of mousse and jelly
Question 1
Is your sale of a specified mousse product GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
Question 2
Is your sale of a specified jelly product GST-free under section 38-2 of the GST Act?
Answer
Yes.
Under section 38-2 of the GST Act a supply of food is GST-free 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.
Food is defined in subsection 38-4(1) of the GST Act to include amongst other things:
(a) food for human consumption (whether or not requiring processing or treatment);
(b) ingredients for food for human consumption;
However, paragraph 38-3(1)(c) of the GST Act provides that a supply of food is not GST-free if it is a supply of food of a kind specified in the third column of the table in clause 1 of Schedule 1 to the GST Act (Schedule 1).
Based on the information provided, the sale of the mouse and jelly products is GST-free under section 38-2 of the GST Act as the products meet the definition of food in section 38-4 of the GST Act and are not food of a kind specified in Schedule 1.
Relevant facts and circumstances
You are registered for GST.
You are an Australian company that manufactures and supplies various products including food and beverage items.
You sell the mousse and jelly products (the Products) in Australia.
The Products are in powdered form.
You provided details of the Products including images of the products, their labels and links to your website.
The Products are designed and marketed as dessert preparations.
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
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1
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