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Edited version of your written advice
Authorisation Number: 1013079713182
Date of advice: 29 August 2016
Ruling
Subject: GST and dry preparations
Question
Is the supply of your product GST-Free?
Answer
Yes.
The supply of your product is not excluded from being GST-free by subsection 38-3(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) as it is an ingredient for a beverage and it is a dry preparation marketed for the purpose of flavouring milk which is covered by item 9 of Schedule 2 of the GST Act. The supply of the product is therefore GST-free under section 38-2 of the GST Act.
Relevant facts and circumstances
You are registered for GST.
You sell a product made from specified ingredients.
Your product is a dry preparation marketed for the purpose of flavouring milk.
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)(d)
A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-4(1)(c)
A New Tax System (Goods and Services Tax) Act 1999 Schedule 2