| Disclaimer 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: 1051843164619
Date of advice: 18 June 2021
Ruling
Subject: GST and food products
Question
Is the supply of the cooked meat and sauce range (the Products) 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 Products is GST-free under section 38-2 of the GST Act because:
• the Products satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption (whether or not requiring processing or treatment), and
• the supply of the Products does not fall within any of the exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You sell the Products and are registered for GST.
The Products are ready to eat and are intended for general consumption.
You describe the Products as a perfect snack for any time of the day.
You provided product information sheets which show the available variants.
• The Products are single serve snack consisting of a number of pieces of cooked meat strips and a tub of dipping sauce.
• The Products are in clear plastic trays with two compartments. One compartment contains the meat and the other compartment contains the tub of sauce.
• The meat is baked not fried.
• The Products are advertised as handy snacks which can be eaten cold or hot.
• The Products do not require cooking or heating for consumption but can be consumed chilled or after heating in the microwave.
The Products are sold in the cheese dairy section of supermarkets. The Products require refrigeration and are sold chilled.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5.
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 paragraph 38-4(1)(a)
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1 clause 1