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Edited version of private advice
Authorisation Number: 1052164726101
Date of advice: 7 September 2023
Ruling
Subject: GST - toddler product A
Question
Will the supply of the Product be a GST-free supply in accordance with subdivision 38-A of the GST Act?
Answer
Yes, your supply of the Product is a GST-free supply pursuant to 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 ingredient for beverages for human consumption and satisfy the definition of food in paragraph 38-4(1)(d) of the GST Act, and
• the Product is of a kind specified under item 13 of the table in clause 1 of Schedule 2 to the GST Act, hence not excluded from being GST-free by section 38-3 of the GST Act
Relevant facts and circumstances
You are registered for GST.
You supply a range of nutritional supplements such as infant nutrition/product A to individual consumers and distributing retailers. The Product is generally sold to be consumed as nutritional support and have minimal alternative application.
The Product is categorised under "Infant nutrition" on your website. The Product will only be available for purchase from a medical professional, pharmacies or directly from you.
Your website includes product information and a photo of the packaging.
The website and the labelling on the packaging of the Product indicate the Product is specially formulated for the invalids who have special medically determined nutrient requirements, and whose dietary management cannot be completely achieved without the use of the Product. It is intended to be used under medical supervision.
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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