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Edited version of private advice
Authorisation Number: 1052326907193
Date of advice: 01 November 2024
Ruling
Subject: GST and food classification
Question 1
Is your supply of consumable products (Products) a GST-free supply under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer 1
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.
The supply of the Products is GST-free under section 38-2 of the GST Act because:
• The Products satisfy the definition of food under paragraph 38-4(1)(a) of the GST Act.
• The supply of the Products does not fall within any of the exclusions in section 38-3 of the GST Act.
This ruling applies for the following period:
XX November 20XX to XX October 20XX
The scheme commenced on:
XX November 20XX
Relevant facts and circumstances
You carry on an enterprise in Australia. You are registered for GST.
You are launching consumable products to be sold through in-store and online retailers and your website. You may sell the products through venues in the future.
You will produce different flavours.
The products will be sold in containers and will not require refrigeration or freezing for their storage.
You provided a list of ingredients for each flavour.
Images of the products are available on your website.
You provided an image of the consumable outside of the container.
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, clause 1
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