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You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1052002863692

Date of advice: 6 July 2022

Ruling

Subject: GST classification of the food products

Question 1

Is a supply of the range of XXXX ('XXXX') GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you sell them at the market and to small cafes?

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 XXXX is GST-free under section 38-2 of the GST Act because:

  • the XXXX satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption and
  • the supply of the XXXX does not fall within any exclusions in section 38-3 of the GST Act.

Question 2

Is a supply of the range of XXXX products ('XXXX') GST-free under section 38-2 of the GST Act when you sell them at the market and to small cafes?

Answer

Yes.

The supply of the XXXX products is GST-free under section 38-2 of the GST Act because:

  • the XXXX products satisfy the definition of food in paragraph 38-4(1)(f) of the GST Act as fats and oils marketed for culinary purposes, and
  • the supply of the XXXX products does not fall within any exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances

You are an Australian entity who is registered for GST.

You sell XXXX and XXXX products in the market and to small cafes.

The XXXX are locally produced and pickled on your farm. The XXXX are processed in brine (with sea salt and filtered water) and XXXX.

The XXXX products are 100 % extra virgin XXXX processed on your farm and there are no additives. The XXXX products are marketed for cooking purposes and are sold in different sizes.

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)

A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-4(1)(f)

A New Tax System (Goods and Services Tax) Act 1999 Schedule 1 clause 1


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