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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1012617593383

Ruling

Subject: GST and food

Question

Is your supply of the particular food product (Product) GST-free?

Answer

Yes.

Relevant facts and circumstances

    • You are registered for goods and services tax (GST).

    • You manufacture and sell the Product.

    • The Product is made from several ingredients.

    • The Product is marketed and labelled solely for a particular purpose.

    • The Product comes with an applicator.

    • Once applied to other foods, the Product dries.

    • Under certain food standards, the Product does not contain enough of a certain type of ingredient to be termed a particular type of product.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 (GST Act)

Section 38-2

Section 38-3

Paragraph 38-4(1)(b).

Reasons for decision

The Detailed food list is a publication that is available on our website and provides details of the GST status of major food and beverage product lines. This publication has the status of a public ruling for GST purposes. Products similar to your Product are classified in this publication as a product that would be GST-free when supplied as they are considered to be ingredients for food under paragraph 38-4(1)(b) of the GST Act.

We consider that your Product has the necessary ingredients and is marketed and packaged in such a way that it can be considered as a product that is similar to those recognised by the Detailed food list. The addition of a certain ingredient and other slight differences to similar products do not alter this GST classification.

Further, the Product cannot be considered as another type of similar product (the supply of which would be taxable as confectionery) given the way the Product is used and marketed. As such, the Product is not excluded from being food under section 38-3 of the GST Act.

Given this, your supply of the Product is GST-free under section 38-2 of the GST Act.

Note that the GST-free supply of a food remains GST-free all along the supply chain. As such, the Product will remain GST-free regardless of the purchaser.


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