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Edited version of private ruling
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Ruling
Subject : GST and supply of food
Question:
Is the sale of oysters after smoking and packaging in jars subject to goods and services tax (GST)?
Advice:
A supply of smoked oysters is a GST-free supply pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
Relevant facts:
You are registered for GST.
Your tax agent has requested a private ruling on your behalf regarding the GST status of smoked oysters.
Your tax agent advised that you will be smoking oysters and packaging them in jars for sale. Your tax agent further advised that the oysters will not be consumed on the premises on which they are sold nor will they be sold hot.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Division 38
Reasons for decision
Detailed reasoning
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.
Food is defined in section 38-4 of the GST Act to include food for human consumption (whether or not requiring processing or treatment) (paragraph 38-4(1)(a) of the GST Act). The smoked oysters are food for human consumption and satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act.
Under paragraph 38-3(1)(c) of the GST Act, a supply of food is not GST-free if it is food of a kind that is specified in the table in clause 1 of Schedule 1 to the GST Act.
Clause 1 of Schedule 1 of the Act does not contain any items that are relevant to smoked oysters. In addition the Detailed Food List states that smoked oysters are a GST-free supply. The Details Food List is a public ruling for the purposes of Section 105-60 of the Taxation Administration Act 1953.