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Edited version of your written advice
Authorisation Number: 1012776026941
Ruling
Subject: Frozen fruit
Question
Are the fruit products GST-free?
Advice
Yes
Relevant facts and circumstances
• You are registered for goods and services tax (GST)
• You supply frozen fruits as food ingredients.
• The frozen fruits are not whole fruits.
• The frozen fruits must be defrosted before use.
• The frozen fruits contain 100% fruits.
• The frozen fruits are packed in bulk containers.
Reasons for decision
A supply of food is GST-free under section 38-2 of the GST Act provided that the supply does not come within any of the exclusions listed in section 38-3 of the GST Act.
Food is defined in section 38-4 of the GST Act to include ingredients for food for human consumption (paragraph 38-4(1)(b) of the GST Act). The frozen fruits are food ingredients. Therefore the frozen fruits satisfy the meaning of food in section 38-4 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 specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1). The relevant item in Schedule 1 for frozen fruits is item 29 of Schedule 1 (item 29). Item 29 lists frozen confectionery, frozen yoghurt and frozen fruit products (but not frozen whole fruit). The food products in item 29 are intended for consumption as frozen or soft served foods, such as ice cream.
The frozen fruits contain 100% fruits and are suppled as food ingredients. The frozen fruits must be defrosted before use and are not supplied for consumption as frozen or soft served food. Therefore, the frozen fruits are not foods listed in item 29.
The frozen fruits are not foods of a kind that is specified in Schedule 1 and are therefore not excluded by paragraph 38-3(1)(c) of the GST Act from being GST-free. The frozen fruits are GST free under section 38-2 of the GST Act.