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Edited version of your written advice
Authorisation Number: 1012868544347
Date of advice: 27 August 2015
Ruling
Subject: GST and Christmas puddings
Question 1
Are supplies of Christmas puddings taxable supplies under section 38-3 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
Relevant facts and circumstances
You are registered for GST and supply Christmas puddings.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 38-2
A New Tax System (Goods and Services Tax) Act 1999 section 38-3
Reasons for decision
Summary
Supplies of Christmas puddings are taxable supplies under section 38-3 of the GST Act.
Detailed reasoning
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.
While subsection 38-4(1) of the GST Act defines food broadly for the purposes of section 38-2 of the GST Act, paragraph 38-3(1)(c) of the GST Act excludes the following from GST-free treatment:
food of a kind specified in the third column of the table in clause 1 of Schedule 1, or food that is a combination of one or more foods at least one of which if food of such a kind;
Clause 1 of Schedule 1 to the GST Act categorises various food types that are not GST-free; prepared food, confectionery, savoury snacks, bakery products, ice-cream food and biscuit goods. Item 20 in Clause 1 under the category 'bakery products' notes that:
cakes, slices, cheesecakes, pancakes, waffles, crepes, muffins and puddings
are not GST-free food.
The word 'pudding' is not defined in the GST Act, the definition used by the Australian Tax Office as set out in Issue 13 of the Food Industry Partnership Issues Register is:
a cooked food that is a sweet or savoury dish made in many forms and of various ingredients, as flour (or rice, tapioca, or the like), milk and eggs, with or without fruit, meat or other ingredients and is a cooked dish consisting of various sweet or savoury ingredients, especially as enclosed within a flour-based crust or mixed with flour, eggs, etc., and boiled or steamed; a baked batter mixture.
Issue 13 also lists examples of what is considered to be 'pudding', Christmas Pudding is one of the examples cited.
Further, the Detailed Food List, which has the status of a GST Public Ruling states that Christmas puddings are subject to GST:
Christmas pudding (supplied hot or cold or requires cooking, heating, thawing or chilling prior to consumption) |
taxable |
Schedule 1, item 20 and clause 2 of the GST Act apply |
It follows that your Christmas puddings are subject to GST.