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Edited version of private advice
Authorisation Number: 1051720885266
Date of advice: 24 July 2020
Ruling
Subject: GST and food
Question
Is the supply of the nuts GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
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 nuts is GST-free under section 38-2 of the GST Act because:
- the nuts satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption and
- the supply of the nuts does not fall within any exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You carry on a primary production business growing nuts.
You are registered for GST.
The nuts in shell are sold to a processor.
You do not process the nuts in any way prior to sale and they are packaged in large bins for transport to the processor.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999section 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 Schedule 1, Clause 1, table.