| Disclaimer This edited version has been archived due to the length of time since original publication.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 your written advice
Authorisation Number: 1012872996328
Date of advice: 7 September 2015
Ruling
Subject: GST and supply of snacks
Question:
Is the supply of the snacks in different flavours (snacks) GST-free?
Answer
Yes.
Under section 38-2 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act), a supply of food is GST-free. The meaning of the term food for GST purposes is defined in section 38-4 of the GST Act. This definition of food includes food for human consumption, whether or not it requires processing or treatment.
The snacks are food for human consumption, and therefore satisfy the definition of food under section 38-4 of the GST Act.
However, under paragraph 38-3(1)(c) of the GST Act, certain supplies of food are not GST-free if it is food of a kind specified in the third column of the table in Schedule 1 of the GST Act (Schedule 1), or food that is a combination of one or more foods at least one of which is food of such a kind.
The snacks are not food listed, or of a kind listed, at any of the items in Schedule 1. Additionally, they are not food that is a combination of one or more foods at least one of which is food of such a kind. Hence, the snacks are not excluded from being GST-free by paragraph 38-3(1)(c) of the GST Act.
Additionally, the snacks are not excluded from being GST-free by virtue of any of the other paragraphs of subsection 38-3(1) of the GST Act. Therefore, the snacks are GST-free under section 38-2 of the GST Act.
Relevant facts and circumstances
• You are registered for the goods and services tax (GST).
• You carry on an enterprise.
• The snacks are puff grains.
• The snacks' height varies around the perimeter.
• The snacks include flavours and seasoning.
• The snacks come in various flavours.
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 paragraph 38-3(1)(c)
A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-4(1)(a)
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1