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Edited version of private advice
Authorisation Number: 1052353048470
Date of advice: 24 January 2025
Ruling
Subject: GST - prepared food
Question
Are your supply of the Products) a GST-free supply of food under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes, your supply of the Products is a GST-free supply pursuant to section 38-2 of the GST Act.
The supply of the Products is GST-free under section 38-2 of the GST Act because:
• the Products are food for human consumption therefore satisfies the definition of food in paragraph 38-4(1)(a) of the GST Act; and
• the Products are not excluded from being GST-free by section 38-3 of the GST Act
Relevant facts and circumstances
You are registered for GST.
You buy the Products from the manufacturer, who sold the Products to you by the cartons on a pallet which is XX cartons in total. The Products are vacuum sealed bulk pouches.
You then supply each Product to your customers (Food Distributors and Foodservice customers) in the same cartons as you bought. Your customers then portion each Product and repackage into 1kg pack to sell to delicatessens, cafes, hotels, pubs, club caterers and hospitality venues.
The Products are fully cooked, supplied frozen in 1kg pack/pouch, and only require defrosting, reheat before being served. The instruction sheets have the Products fully thawed before heating. The Products can be heated in a hot water bath or steam oven with the heat and amount of time varying slightly depending on the device and the product. The Products are designed to be the part of a meal which can be accompanied with rice, chips and or vegetables.
You provided the prices of each carton, the quantity of each pouch, and the marketing brochure which advertised the Products as 'fully cooked and supplied frozen' food, recommended for buffet service, function centres, events, hotels, etc.
You also supplied the labelling on the outer packaging of the carton, the internal individual pouches and the ingredients list as well as nutritional tables of each Product.
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)(a)
A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-3(1)(b)
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
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1 clause 2
A New Tax System (Goods and Services Tax) Act 1999 Schedule 1 clause 3