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Ruling
Subject: GST classification of a food item
Question 1
Are you making a GST-free supply under section 38-2 of the A New Tax System (Goods and Services Tax Act 1999 (GST Act) when you supply a product as food for human consumption?
Answer
Yes
Question 2
This ruling applies for the following periods:
The scheme commences on:
Relevant facts and circumstances
You are registered for GST.
You carry on an enterprise and plan to import a product and are not sure if it will attract GST.
You consider that the product is food for human consumption and that it is marketed for culinary purposes.
The product has nutritional value.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 (GST Act)
Section 38-2
Section 38-3
Section 38-4
Reasons for decision
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 (whether or not requiring processing or treatment) and ingredients for food or beverages for human consumption. As the product is supplied as food for human consumption, it satisfies the definition of food in paragraph 38-4(1)(a) of the GST Act.
However, 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 (Schedule 1). The product is not food of a kind specified in Schedule 1.
In addition, the supply of the product does not fall within any of the other exclusions in section 38-3 of the GST Act. Therefore, you are making a GST-free supply under section 38-2 of the GST Act when the product is supplied as food for human consumption.