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Edited version of private advice
Authorisation Number: 1051741694623
Date of advice: 24 August 2020
Ruling
Subject: GST and food
Question
Is the supply of the Product 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 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.
Relevant facts and circumstances
You make and sell a plant-based food product and you are registered for GST.
The Product is a plant-based food product that is sold as an individual unit of a particular weight. It is intended to be consumed as an ingredient or component of a meal or snack and stored in accordance with the directions on the nutritional label.
The ingredients are plant-based including wheat, beans, tomato paste, oil, herbs and spices.
The Product has to be kept refrigerated and stored in sealed in airtight container/bag after opening for best results.
You advertise the Product as a wholesale item on your social media accounts.
The Product is sold to retailers, distributors and eateries around Australia.
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 Schedule 1, Clause 1, table.