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Edited version of private advice
Authorisation Number: 1051879795060
Date of advice: 3 August 2021
Ruling
Subject: GST and food classification
Question
Is the supply of XXXXX beans ('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.
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 registered for GST.
You manufacture and supply the Product in Australia.
The Product is XXXXX beans.
The Product can be eaten by itself or mixed with sauce and put on rice/pasta or used as an ingredient to make a dish.
The Product requires refrigeration.
The process of production of the Product:
• soak beans
• cook in pressure cooker
• add cultures when still hot, mix and then add to container and cover with top
• put in incubator
• put in the fridge to reduce temperature
• move to storage fridge, ready for distribution.
The ingredients arebeans and cultures.
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.