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Edited version of private advice
Authorisation Number: 1051783527790
Date of advice: 21 December 2020
Ruling
Subject: Goods and services tax and snack 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.
In this case, 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 are a food supplier and are registered for GST.
The Product is a savoury snack.
The Product does not require refrigeration, is sold in pieces and is a source of high protein. It is eaten on its own but can also be used in salads, sandwiches, as an ingredient for savoury baked goods, quiches and omelettes or in stews and soups.
The Product is available in different flavors and in snack size bags. The Product is made from dry-cured beans.
You provided the samples which show the food items as bite-size pieces that are moist, chewy and slightly salty due to the flavourings.
You provided a marketing sheet which provides that the Product is an all natural snack marinated and seasoned for an authentic taste and texture.
The Product is sold mainly through specialty health food stores and supermarkets, where the Product is placed in the "healthy snack" section.