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Edited version of private advice
Authorisation Number: 1052325219216
Date of advice: 10 January 2025
Ruling
Subject: GST and food classification
Question 1
Is your supply of a food product (Product) a GST-free supply pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer 1
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 an ingredient for 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.
Question 2
Is the importation of the Product into Australia by you a non-taxable importation pursuant to section 13-10 of the GST Act?
Answer 2
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.
This ruling applies for the following period:
XX January 20XX - XX January 20XX
The scheme commenced on:
XX January 20XX
Relevant facts and circumstances
You are an Australian entity and registered for GST.
You import a food product (the Product) into Australia.
You sell the Product in its raw form and also use the Product as an ingredient in other products you sell.
You sell the Product in bulk and retail sizes.
The Product is not marketed as an ingredient for confectionery.
The Product can be used as an ingredient for making both beverages and food.
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, clause 1