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Subject: GST and food
Question
Is your supply of your food products (Products) subject to goods and services tax (GST)?
Answer
No.
Relevant facts and circumstances
You are registered for GST.
You import then sell the Products.
The Products are marketed by you as condiments to be used with food.
Relevant legislative provisions
All references are to the A New Tax System (Goods and Services Tax) Act 1999:
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.
The definition of food in section 38-4 of the GST Act includes goods to be mixed with or added to food for human consumption (including condiments). Your Products are sold as condiments to be used with food and consequently can be treated as food for GST purposes.
Your Products do not fall within any of the exclusions in section 38-3 of the GST Act. Further to this the GST food guide (available from the ATO website www.ato.gov.au ) provides that the supply of condiments is GST-free.
Consequently, your supply of your Products would not be subject to GST.