| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1013106148428
Date of advice: 14 October 2016
Ruling
Subject: Goods and services tax (GST) and sales of XYZ
Question
Is GST payable on your sales of XYZ?
Answer
No.
Your sales of XYZ are GST-free because:
● the product is food for human consumption under paragraph 38-4(1)(a) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), and
● the exclusions in section 38-3 of the GST Act do not apply to the product.
Additional information
You are not registered for GST.
You will be required to be registered for GST if your GST turnover reaches $75,000 or more. It should be noted that GST-free sales are included in the GST turnover calculation. See Goods and Services Tax Ruling GSTR 2001/7 for further guidance - type in GSTR 2001/7 into an internet search engine.
Relevant facts and circumstances
You are not registered for GST
You sell XYZ.
This product is made from XX and XX. This type of product is made by a controlled fermentation process that binds XX into a cake form.
This product is currently marketed to supermarkets, restaurants and individual consumers.
The product can be prepared to make a side dish, meal component or snacks. Like vegetarian substitutes, XYZ is very versatile and most of the time XYZ needs to be seasoned and cooked before being consumed.
The product would usually be found in the refrigerated section of a supermarket, the same with X and other vegetarian substitutes. This product needs to be kept frozen even while in an unopened state.
The product is not a dessert or a prepared meal.
The product is wrapped in plastic packaging.
The labelling information specifies the product name. The ingredients are XX and XX.
On the packaging, there is information on what XYZ is, the benefit of eating XYZ and where to find more information and recipes on XYZ.
The price of the product is $X each.
The weight of the product is X grams
You do not supply the product for consumption on the premises from which you supply it.
You supply the product wholly within Australia.
You provided photos of the product.
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 section 38-4
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1