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Edited version of your written advice
Authorisation Number: 1013090024917
Date of advice: 14 October 2016
Ruling
Subject: GST-free and supply of food
Question
Are you making a GST-free supply under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you sell Product A?
Answer
Yes.
The supply of Product A is GST-free under section 38-2 of the GST Act because:
● Product A is food for human consumption and satisfies the definition of food (paragraph 38-4(1)(a) of the GST Act) and
● the supply of the Product A does not fall within any exclusions in section 38-3 of the GST Act.
Question 2
Are you making a GST-free supply under section 38-2 of the GST Act when you sell Product B?
Answer
Yes
The supply of the Product B is GST-free under section 38-2 of the GST Act because:
● Product B is food for human consumption and satisfies the definition of food (paragraph 38-4(1)(a) of the GST Act) and
● the supply of Product B does not fall within any exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You are a wholesale food distributor and are registered for goods and services tax (GST).
You are about to launch new products into the Australian foodservice market.
Product A contains fillings encased in X
Product B contains fillings encased in something other than X
Products A and B as are not marketed as a prepared meal. They are designed to be used as part of a meal.
Products A and B are not sold for consumption on the premises from which they are supplied. You do not supply Products A and B as hot food for consumption away from those premises.
You sell Products A and B to food service distributors/wholesalers.
Products A and B are imported as products.
You provided the labels for Products A and B.
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
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 section 38-4
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, Clause 1, item 22
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, Clause 1, item 23
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, Clause 1, item 25