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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: 1051719839336

Date of advice: 15 July 2020

Ruling

Subject: GST and supply of food

Question 1

Is the supply of the Product GST-free pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Answer 1

Yes.

A supply of food is GST-free under section 38-2 of the GST Act 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.

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

  • the 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 Product does not fall within any other exclusions in section 38-3 of the GST Act.

Question 2

Is the importation of the Product a non-taxable importation under paragraph 13-10(b) of the GST Act?

Answer 2

Yes.

Under paragraph 13-10(b) of the GST Act, an importation is classed as a non-taxable importation if it would have been a supply that was GST-free or input taxed, if it had been a supply.

The importation of the Product is a non-taxable importation under paragraph 13-10(b) of the GST Act because, as outlined in Question 1, the supply of the Product is GST-free.

Relevant facts and circumstances

You will import and sell the Product in Australia.

The Product is food but can also be used for non-food purposes.

You provided a picture of the Product and the packaging includes the following information:

  • Organic 100% biodegradable
  • Ingredients: a particular type of grain
  • Cook for several minutes in the water if used as a food.
  • The particular weight in grams
  • Keep in a fresh and dry place, away from heat and light sources.
  • Made outside Australia.

The Product will be sold in organic shops, markets, independent supermarkets and to restaurants and cafes.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Section 13-5.

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 Section 38-4.

A New Tax System (Goods and Services Tax) Act 1999 Paragraph 38-4(1)(a).

 


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