Private ruling: food classification
Published: May 2012

Ruling: Q1: Is the fruit bun GST-free? | A1: Yes



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). As your bakery product are food for human consumption, they satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act. Subsection 38-3(1) of the GST Act provides that a supply of food is not GST-free if it is a supply of, amongst other things: (a) food for consumption on the premises from which it is supplied, or (b) hot food for consumption away from those premises, or (c) food of a kind specified in Schedule 1 of the GST Act, or (d) food that is a combination of one or more foods at least one of which is food of such a kind The fruit buns are not sold as hot food and are not for consumption on the suppliers' premises. Next we have to consider whether the buns are food of a kind specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1). In your case we consider item 27 in Schedule 1 (Item 27) may be applicable as item 27 is about 'bread (including buns) with a sweet filling or coating. The GST status of food is outlined in the Australian Taxation Office (ATO) public ruling "Detailed Food List" (Food lists). The buns and loafs are listed on the Food Lists as follows: 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. fruit loaf 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 fruit loaf without a sweet 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. fruit loaf, glazed or unglazed but without a sweet filling or coating GST-free Food for human consumption that is not of a kind specified in Schedule 1 of the GST Act. You advised that the fruit buns do not have sweet fillings or coating. They contain fruits mixed in the dough before baking. As your products do not have sweet fillings or coating, they are therefore not food of a kind specified in item 27. The fruit buns are not listed in Schedule 1 of the GST Act. Therefore the fruit buns are not excluded from being GST-free under section 38-3 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 of supplying bakery products. | You are selling fruit buns. | You advised that the fruits buns do not have sweet filling or coating. They contain fruits mixed in the dough before baking. | The buns are not sold as hot food and are not for consumption on the suppliers' premises