ATO ID 2001/361: GST and a supply of a bulk catch of fresh dead fish
Date of decision: 4 July 2001
Business line: Indirect Tax

Issue
Is the entity, a professional fisherman, 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 a bulk catch of fresh dead fish?

Decision
Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells a bulk catch of fresh dead fish.

Facts
The entity is a professional fisherman. The entity sells a bulk catch of fish. The fish are sold dead, fresh, chilled and unprocessed, apart from cleaning or skinning certain varieties in readiness for sale. The entity sells the catch as food for human consumption. 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 it satisfies the definition of food in section 38-4 of the GST Act and it is not excluded by section 38-3 of the GST Act. Food is defined in paragraph 38-4(1)(a) of the GST Act to include food for human consumption (whether or not requiring processing or treatment). In this case, the fish are dead and are supplied as food for human consumption. Therefore, the fish satisfy the definition of food contained 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). Fresh dead fish do not fall under any item in Schedule 1. In addition, the supply of the fresh dead fish 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 of a bulk catch of fresh dead fish under section 38-2 of the GST Act.

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
Subject references: Goods & services tax GST-free GST food Food for human consumption