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Edited version of private advice
Authorisation Number: 1051876223089
Date of advice: 26 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 are a supplier of XXX snacks to the Australian market.
You are registered for GST.
The Products are smoked, dried and seasoned XXX bars.
The food item is a strip of XXX that is chewy.
The Products are sold to retailers. The Products will be located near the salty snacks section of the supermarket.
You provided product specification of the available flavours and package sizes, along with images of the food item.
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.