Edited version of private advice

Authorisation Number: 1052525873861

Date of advice: 2 April 2026

Ruling

Subject: GST and additives

Question

Is the supply of the specified products (the Products) GST-free under 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 it meets the definition of food in section 38-4 of the GST Act and is not excluded from being GST-free under section 38-3 of the GST Act.

The Products are food additives that are incorporated into food during production to enhance taste, flavour, colour, aroma, and shelf life of the final food product.

The Products satisfy the definition of food in paragraph 38 4(1)(b) of the GST Act, as they are used in the manufacture of food products for human consumption and therefore constitute ingredients for food for human consumption.

Under paragraph 38-3(1)(e) of the GST Act, a supply of food is not GST-free if it is of a kind specified in the A New Tax System (Goods and Services Tax) Regulations 2019 (GST Regulations) for the purposes of subsection 38-3 of the GST Act.

A food additive is excluded from being GST-free unless it is an exempt food additive as defined in subsection 38-3.01(2) of the GST Regulations.

Based on the information provided, the Products are exempt food additives because they meet all the requirements in paragraph 38-3.01(2)(b) of the GST Regulations, as at the time of supply, the Products:

•                 have a measurable nutritional value

•                 are supplied for use solely in the composition of food, and

•                 are essential to the composition of the food, as they are manufactured specifically for use in food products.

Accordingly, the supply of the Products is not excluded from being GST-free under paragraph 38-3(1)(e) of the GST Act.

Additionally, the supply of the Products does not fall within any of the other exclusions in section 38-3 of the GST Act. Therefore, the supply of the Products is GST-free under section 38-2 of the GST Act.

Relevant facts and circumstances

You are registered for GST.

You supply various products to the food industry for the manufacture of food products for human use only.

You have commenced importing the Products from a specified overseas manufacturer.

The Products are manufactured specifically for use in foods intended for human consumption. The Products are incorporated into food during production to enhance taste, flavour, colour, aroma, and shelf life of the final food products.

You supply the Products for use solely in the composition of food for human consumption.

The Products do not have any non-food applications.

You provided Technical Data Sheets and Manufacturer's Declaration documents prepared by the manufacturer of the Products. These documents describe the composition, intended food use, and functional role of the Products in the manufacture of food for human consumption.

The Technical Data Sheets and Manufacturer's Declaration documents show that, at the time of supply, the Products:

•                 have a measurable nutritional value

•                 are supplied for use solely in the composition of food, and

•                 are manufactured specifically for use in foods.

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) Regulations 2019 paragraph 38-3.01(2)(b)

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