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Edited version of private advice
Authorisation Number: 1052133842174
Date of advice: 3 July 2023
Ruling
Subject: GST - frozen food
Question
Is the supply of the frozen food products (Products) GST-free?
Answer
Yes.
Under section 38-2 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act), a supply of food is GST-free. The meaning of the term food for GST purposes is defined in section 38-4 of the GST Act. This definition of food includes food for human consumption, whether or not it requires processing or treatment.
The Products are food for human consumption, and therefore satisfy the definition of food under section 38-4 of the GST Act.
However, under paragraph 38-3(1)(c) of the GST Act, certain supplies of food are not GST-free if it is food of a kind specified in the third column of the table in Schedule 1 of the GST Act (Schedule 1), or food that is a combination of one or more foods at least one of which is food of such a kind.
The Products are not food listed, or of a kind listed, at any of the items in Schedule 1.
Additionally, they are not food that is a combination of one or more foods at least one of which is food of such a kind. Hence, the Products are not excluded from being GST-free by paragraph 38-3(1)(c) of the GST Act.
Further, the Products are not excluded from being GST-free by virtue of any of the other paragraphs of subsection 38-3(1) of the GST Act. Therefore, the Products are GST-free under section 38-2 of the GST Act.
Relevant facts and circumstances
You are registered for GST. You supply frozen food packages and market them as for consuming with other food such as rice, noodle, bread, couscous, chips, etc.
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 Schedule 1 clause 1 table