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Edited version of private advice
Authorisation Number: 1051957751688
Date of advice: 11 March 2022
Ruling
Subject: GST and food
Question 1
Is the supply of 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 section 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 (whether or not requiring processing or treatment), and
• the supply of the Product does not fall within any of the exclusions in section 38-3 of the GST Act.
Question 2
Is the importation of the Product a non-taxable importation under paragraph 13-10(b) of the GST Act?
Answer 2
Yes.
Paragraph 13-10(b) of the GST Act provides that an importation is a non-taxable importation to the extent that, had it been a supply, the supply would have been a GST-free or input taxed supply.
The importation of the Product is a non-taxable importation under paragraph 13-10(b) of the GST Act because, as outlined in Question 1, had it been a supply, it would have been GST-free.
Relevant facts and circumstances
• You are importing the Product .
• You are registered for GST.
• The ingredients are water, grains and yeast.
• You provided pictures and samples of the Product.
• You provided the manufacturing process.
• The Product can be eaten on its own or mixed with other ingredients to make dessert or breakfast food.
• The Product is shelf-stable and kept at room temperature.
• The Product is sold in the pantry products section of a supermarket.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 Section 13-5.
A New Tax System (Goods and Services Tax) Act 1999 Paragraph 13-10(b).
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).
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, clause 1, table.