ATO ID 2004/675: GST and mantous (oriental buns without filling)
Date of decision: 13 June 2002
Business line: Indirect Tax

Issue
Is the entity, a food supplier, making a GST-free supply under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it sells mantous?

Decision
Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells mantous.

Facts
The entity is a food supplier. The entity sells mantous in plain and coloured varieties. Mantous are oriental buns without filling. The ingredients are flour, sugar, margarine and yeast. The coloured mantous also have food colouring. The mantous are supplied frozen and may be steamed, microwaved or deep fried. The product is not sold hot and is not for consumption on the premises from which it is supplied. The entity is registered for goods and services tax (GST).

Reasons for decision
Summary: A supply of food is GST-free under section 38-2 of the GST Act if the product satisfies the definition of food in section 38-4 of the GST Act and the supply is not excluded from being GST-free by section 38-3 of the GST Act. Food is defined in section 38-4 of the GST Act to include food for human consumption (whether or not requiring processing or treatment) (paragraph 38-4(1)(a) of the GST Act). Mantous are food for human consumption and satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act. However, under paragraph 38-3(1)(c) of the GST Act, a supply of food is not GST-free if it is food of a kind specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1). Item 27 in Schedule 1 (Item 27) specifies 'bread (including buns) with a sweet filling or coating.' Neither the plain mantous nor the coloured mantous have sweet fillings or coatings. Therefore, mantous are not food of a kind covered by Item 27 and are not excluded from being a GST-free supply by paragraph 38-3(1)(c) of the GST Act. In addition, the supply of mantous does not fall within any of the other exclusions in section 38-3 of the GST Act. Therefore, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells mantous.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 38-2 section 38-3 paragraph 38-3(1)(c) section 38-4 paragraph 38-4(1)(a) Schedule 1 clause 1 Schedule 1 clause 1 table item 27
Subject references: Goods and services tax GST free GST food Food for human consumption