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Edited version of private advice
Authorisation Number: 1052115334568
Date of advice: 4 May 2023
Ruling
Subject: GST and supply of powdered food products
Question
Is the supply of the specified products (the Products) GST-free pursuant to 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 that is registered for GST.
You supply various nutrition food products. You have developed new blends of powdered food products in Australia.
The Products are sold online and in retail stores.
The Products are in powdered form that can be added to any food or smoothies.
You provided samples of the Products, details of their ingredients and their manufacturing process.
You provided photos of the packaging and labelling of the Products.
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
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