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Edited version of private ruling
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Ruling
Subject: GST and a fruit juice product
Question
Is the fruit juice product (Product) as described a GST-free beverage under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Advice/Answer
Yes, the Product as described is a GST-free beverage under item 12 of Schedule 2 of the GST Act.
Relevant facts
You are registered for GST.
You have recently commenced selling the Product which is blended with various fruit juices.
Reasons for decision
Food is defined in section 38-4 of the GST Act to include food for human consumption (paragraph 38-4(1)(a) of the GST Act) and beverages for human consumption (paragraph 38-4(1)(c) of the GST Act).
The Product as described could be considered as a beverage for human consumption under paragraph 38-4(1)(c) of the GST Act. This Product could then be GST-free if it fits within Schedule 2 of the GST Act. Of most relevance to this case is item 12 of Schedule 2. Item 12 provides that non-alcoholic non-carbonated beverages that consist of at least 90% by volume of juices of fruits or vegetables are GST-free.
The Product is considered to be the juice of a fruit. Furthermore, this Product is non-alcoholic, non-carbonated and consists of at least 90% by volume of juice and therefore, is covered by Item 12.
In addition, the supply of the Product does not fall within any of the other exclusions in section 38-3 of the GST Act. It follows, therefore, that the supply of the Product is GST-free under section 38-2 of the GST Act where it is not supplied for consumption on your own premises.