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Edited version of your private ruling
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Ruling
Subject: GST and food
Question
Will your sale of the imported food product (Food Product) be GST-free?
Answer
Yes. Your importation of the Food Product will also be non-taxable as a consequence.
Relevant facts and circumstances
You are registered for goods and services tax (GST).
You are to import and sell the Food Product which you will manufacture overseas.
You were issued with a GST private ruling in relation to the sale of a product you manufacture in Australia. This ruling confirmed that your sale of this product is GST-free.
The product manufactured in Australia uses a particular ingredient.
The Food Product you are to import and sell is identical to the Australian made product except it will be made with another type of ingredient instead of the particular ingredient used in Australia. The Food Product will also be moulded slightly differently.
Apart from the details provided by the above dot point, the facts used in the previously issued GST ruling have not changed.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999
Section 13-10
Section 38-2
Reasons for decision
This ruling should be read in conjunction with the previous GST ruling issued to you.
The GST legislative provisions in relation to food have not changed since the GST ruling issued to you to exclude your supply of the Australian made product from being GST-free. Consequently, the previous GST private ruling issued to you remains correct in its application of your sale of the Australian made product.
In the case of the Food Product, the substitution of a particular ingredient, the change in moulding and the fact that the Food Product will be imported into Australia does not alter the character of the Food Product.
Accordingly, and for the reasons stated in your previous GST ruling, the sale of the Food Product in Australia will be GST-free under section 38-2 of the A New Tax System (Goods and Services Act) 1999 (GST Act).
Non-taxable importation
Section 13-10 of the GST Act provides that an importation is a non-taxable importation if:
· it is a non-taxable importation under Part 3-2 of the GST Act, or
· it would have been a supply that was GST-free or input taxed if it had been a supply (for example, it would be a GST-free supply had the supply been made in Australia).
In your case, your supply of the imported Food Product in Australia will be GST-free and consequently, your importation of the Food Product will be non-taxable under section 13-10 of the GST Act.