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Edited version of private advice
Authorisation Number: 1051936273047
Date of advice: 23 December 2021
Ruling
Subject: GST and food products
Question
Is the supply of the breakfast cereal range (the Products) 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 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 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 (whether or not requiring processing or treatment) and
• the supply of the Products does not fall within any of the exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
You manufacture and supply the food Products in Australia.
You are not registered or required to be registered for GST. Your current and projected GST turnover is less than $75,000.
The Products are made with all-natural ingredients.
The Products are vegan and gluten-free.
The Products are supplied in resealable bags as they are designed to keep multiple serves to be eaten over several days.
The Products come in different flavours.
The Products are made with nuts, desiccated coconut and dried fruits.
The Products do not contain ingredients such as oats or wheat.
You have provided samples of the Products.
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 paragraph 38-4(1)(a)