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Edited version of private advice
Authorisation Number: 1052287884080
Date of advice: 8 August 2024
Ruling
Subject: GST - classification of the food product
Question
Is the importation of the Product into Australia a taxable importation pursuant to section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
No.
The importation of the Product is a non-taxable importation under paragraph 13-10(b) of the GST Act because had it been a supply, it would have been GST-free.
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, and
• the supply of the Product does not fall within any exclusions in section 38-3 of the GST Act.
Relevant facts and circumstances
• You are a company registered for goods and services tax (GST).
• You carry on a business of import/export agent, wholesaler.
• You intend to the Product in Australia to sell in the retail market.
• The Product is required to be kept refrigerated.
• The Product is sold in a plastic container.
• The Product will be marketed to be used as an ingredient in foods like pasta, salad, rice, omelette, savoury cakes and pies.
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 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 section 38-4
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, item 4
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, clause 2 and 3