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Edited version of your written advice
Authorisation Number: 1051378404462
Date of advice: 29 May 2018
Ruling
Subject: GST and supply of plant products
Question
Is the supply of the Plant products GST-free pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Under section 38-2 of the GST Act a supply of food is GST-free if the product satisfies the definition of food in section 38-4 of the GST Act and the supply is not excluded from being GST-free by section 38-3 of the GST Act.
(a) The supply of the powdered Plant products is GST-free under section 38-2 of the GST Act because:
● these products are ingredients for food for human consumption within the meaning of food under paragraph 38-4(1)(b) of the GST Act and
● the supply of these products does not fall within any of the exclusions in section 38-3 of the GST Act.
(b) The supply of the Plant Oil is GST-free under section 38-2 of the GST because:
● the Plant Oil is considered an ingredient for food for human consumption, within the meaning of food under paragraph 38-4(1)(b) of the GST Act or fats and oils marketed for culinary purposes in accordance with paragraph 38-4(1)(f) of the GST Act, and
● the supply of the Plant Oil does not fall within any of the exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You produce and sell certain plant products. You are registered for GST.
Your website and the product information sheets you provided contain information about each of the Plant products.
The Plant products are currently sold in health food stores and online. The Plant products are also sold in bulk.
The powdered Plant products are marketed as a food ingredient for use in snacks, baked goods, in beverages and in salads. They can be added to most baking recipes and can be added to a range of recipes and used for their nutritional content. They can also be taken on their own.
The Plant Oil is perfect for drizzling over salads, in sauces, dips and shakes.
Your website contains recipes which include the Plant products as ingredients.
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)(b).
A New Tax System (Goods and Services Tax) Act 1999 Paragraph 38-4(1)(f).