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Edited version of private advice
Authorisation Number: 1051850062880
Date of advice: 12 August 2021
Ruling
Subject: GST and food
Question
Is the supply of the range of frozen condiments (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)(e) of the GST Act as an ingredient for food for human consumption, and
• the supply of the Products does not fall within any exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You sell the Products.
You are registered for GST.
The Products are intended to be used for finishing foods, as meal flavouring or garnish.
The Products are in single serve packs sold in a bulk box.
The Products are sold to supermarkets and food service distributors.
The Products must be kept frozen and once defrosted must be used within a few days.
You provided the manufacturing process.
You provided a brochure, images of the Products and the labels of the different flavours.
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 paragraph 38-4(1)(e).
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1 clause 1.