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Edited version of private advice
Authorisation Number: 1051907874267
Date of advice: 08 October 2021
Ruling
Subject: GST and food classification
Question
Is the supply of a spread GST-free pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
A supply of the spread 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 Spread is GST-free under section 38-2 of the GST Act because:
- the spread satisfies the definition of food in paragraph 38-4(1)(e) of the GST Act being "goods to be mixed with or added to food for human consumption" and
- the supply of the spread t does not fall within any exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You are an Australian entity which is registered for GST.
You supply a spread to the retail market in Australia.
The spread is made from a combination of ingredients.
The spread is marketed predominantly as a spread and its predominant use is that of a spread. The Product can be spread on bread, crackers but also stirred through a desired dish.
The spread is sold in the same aisle and bay as other spreads such as peanut butter and jam.
The spread is priced similarly to peanut butter and jam products.
You provided the manufacturing process of the spread.
You provided images of the spread and the labels of the spread.