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Edited version of private advice
Authorisation Number: 1051857355008
Date of advice: 10 August 2021
Ruling
Subject: GST and food
Question
Is the supply of 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.
In this case, 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, 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 supply meat snacks to the Australian market.
You are registered for GST.
The Products are sausage filled with meat and seasoning.
The Products are vacuum packed in food grade film and are shelf stable.
The food item has a soft to medium texture with a little bit of moisture.
You provided details about the different flavours and packages sizes of the Products, along with images of the packaging.
You also provided the manufacturing process for the Products.
The Products are sold to retailers and distributors in cartons of a number of sticks and then on-sold as individual sticks.
The Products will be located near the salty snacks section of the supermarket.
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.