Private ruling: food
Published: October 2011

Ruling: Q1: Are the buns GST-free? | A1: No



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 (refer to paragraph 38-4(1)(a) of the GST Act). As you are selling bread (buns) for human consumption, they 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 Schedule 1 to the GST Act. The food listed at Item 27 in Schedule 1 (Item 27) is 'bread (including buns) with a sweet filling or coating'. The GST status of foods is outlined in the Australian Taxation Office (ATO) public ruling "Detailed Food List" (Food List). We enclose a copy for your reference. The buns listed on the Food List are: Item GST status Notes buns with a sweet filling or coating (other than a glaze, supplied hot or cold or requires cooking, heating, thawing or chilling prior to consumption) taxable Schedule 1, item 27 and clause 2 of the GST Act apply. finger buns (supplied hot or cold or requires cooking, heating, thawing or chilling prior to consumption) taxable Schedule 1, item 27 and clause 2 of the GST Act apply fruit buns and hot cross buns (no icing or filling) GST-free Food for human consumption that is not of a kind specified in Schedule 1 of the GST Act. hot cross buns, plain without a sweet filling or coating (a glaze is not considered a sweet coating) GST-free Food for human consumption that is not of a kind specified in Schedule 1 of the GST Act. Mantous (oriental buns without filling) GST-free Food for human consumption that is not of a kind specified in Schedule 1 of the GST Act. Schedule 1, item 27 of the GST Act does not apply because the buns do not have a sweet filling (refer to ATO ID 2004/675). You advised that the coating and filling on the buns are sweet in taste. Therefore we consider these products are food of a kind specified at Item 27. The buns are excluded from being GST-free under paragraph 38-3(1)(c) of the GST Act.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You are registered for the goods and services tax (GST). | You carry on an enterprise. | You produce buns for sale. | The buns contain either a sweet filling or a sweet coating. | The products are not sold hot and are not for consumption on the suppliers' premises.