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Edited version of private advice
Authorisation Number: 1052145154023
Date of advice: 9 August 2023
Ruling
Subject: GST - frozen food
Question
a. Is the importation of the frozen food X (the Product) into Australia by (you) a non-taxable importation pursuant to section 13-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
a. Yes, the importation of the Product is a non-taxable importation pursuant to section 13-10 of the GST Act because it would have been a supply that was GST-free if it had been a supply.
Question
b. Is your sale of the Product a GST-free supply pursuant to section 38(2) of the GST Act?
Answer
b. Yes, your supply of the Product is a GST-free supply pursuant to section 38-2 of the GST Act.
The supply of the Product is GST-free under section 38-2 of the GST Act because:
• the Product is food for human consumption and satisfies the definition of food in paragraph 38-4(1)(b) of the GST Act; and
• the Product is not excluded from being GST-free by section 38-3 of the GST Act.
Consequently, your importation of the Product is non-taxable under section 13-10 of the GST Act and therefore would not be subject to GST.
Relevant facts and circumstances
You are registered for GST.
You are a wholesaler who imports the Product into Australia. After importation of the frozen Product, you will sell it to your customer (a Food Wholesaler) in the frozen state, and they in turn will sell it frozen to a supermarket. In the supermarket, the Product is placed in the frozen section, next to other frozen food X products.
You do not have any marketing or advertising materials on the Product because this is a new product being developed for your Food Wholesaler customer. It will be made partially cooked (pre fried) and then frozen for sale which will require baking before being consumed.
You provide photos of the packaging, which show how the Product is packed at the time of importation. You will not alter any labelling or packaging before selling to your wholesale customer. Your wholesale customer will not make any alterations to the packaging nor the Product, and this is how consumers will find the Product in the supermarket.
The pastry is a spring roll pastry.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 13-10
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 38-4(1)(a)