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This edited version has been archived due to the length of time since original publication.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 private advice

Authorisation Number: 1051579364430

Date of advice: 17 September 2019

Ruling

Subject: GST and classification of a food product

Question

Is the supply of your product GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer

Yes.

The supply of the product is GST-free under section 38-2 of the GST Act because:

  • it satisfies the definition of food in paragraph 38-4(1)(e) of the GST Act as 'goods to be mixed with or added to food for human consumption' and
  • the supply of the product does not fall within any exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances

You are registered for GST.

You sell the product as part of an enterprise you carry on in Australia.

You advised the product is not a snack and it cannot be consumed on its own. It is used for cooking and baking.

You advised you import the product then sell it to supermarkets and grocery stores.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 (GST Act)

- Section 38-2;

- Section 38-3;

- Section 38-4;

- Schedule 1


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