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Edited version of private advice
Authorisation Number: 1051894722683
Date of advice: 2 September 2021
Ruling
Subject: GST on the supply of herbal tea products
Question 1
Is the supply of herbal tea products ('Products) GST-free pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer 1
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 section 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)(d) of the GST Act as ingredients for beverages for human consumption and
- the supply of the Products does not fall within any exclusions in section 38-3 of the GST Act.
Question 2
Is the importation of the Products into Australia by you a taxable importation pursuant to section 13-5 of the GST Act?
Answer 2
No. The importation of the Products into Australia by you will be non-taxable importation pursuant to section 13-5 of the GST Act.
This ruling applies for the following periods:
The tax periods commencing 1 July 20XX and ending 30 June 20XX.
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances
You are an Australian company which is registered for GST.
You import the herbal tea products ('Products') and supply in Australia.
The Products are herbal teas, green tea and black tea. Each variety is to be blended for delicious taste and a xxxx xxxx.
The Products has organic Ingredients and xxxx Quality Blends.
The Products are created with xxxxx, using xxxx xxxxx, quality ingredients.
The Products are caffeine Free.
The Products are not designated or consumed as a medicinal or a therapeutic tea preparation.
You do not market or promote the Products for a specific remedial purpose.
You do not identify the Products as being for a specific remedial purpose.
The Products are not listed in the Therapeutic Goods Register.
The Products combine exotic herbs and botanicals from around the world to create xxxx complex xxxx tea blends inspired by the holistic teachings of xxxx. The Products are purposefully formulated to provide xxxxx delicious taste and xxxxx xxxxx.
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)(d)
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)(d).
A New Tax System (Goods and Services Tax) Act 1999 Schedule 2
A New Tax System (Goods and Services Tax) Act 1999 Schedule 2, Item 5