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Edited version of your written advice
Authorisation Number: 1051326541429
Date of advice: 18 January 2018
Ruling
Subject: GST food classification
Question
Is the importation of the Powdered Product a non-taxable importation under paragraph 13-10(b) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes. The importation of the Powdered Product is a non-taxable importation under paragraph 13-10(b) of the GST Act because had it been a supply, it would have been GST-free.
The supply of the Powdered Product is GST-free under section 38-2 of the GST Act because:
● the Powdered Product satisfies the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption, and
● the supply of the Powdered Product does not fall within any exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You sell a range of powdered food products. You are not registered for GST.
You are importing the Powdered Product and then selling them to the Australian market through your website and to cafes and health food shops.
You provided a draft product label.
The back label includes the following information:
● The Powdered Product is a natural product purified from a particular raw material.
● The Powdered Product has many health benefits.
● The Powdered Product can be added to smoothies, cereal, yoghurt or any recipes.
● The Powdered product is made up of 100% of the particular raw material.
● The label includes the nutritional information which shows that the Powdered Product contains vitamins and minerals.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Paragraph 13-10(b).
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).