Private ruling: GST and supply of food
Date of advice: 1 May 2017
Published: September 2017

Ruling: Q1: Are you making a GST-free supply under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you sell a specified product (the Product)? | A1: Yes. 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. The supply of the Product is GST-free under section 38-2 of the GST Act because: ● the Product is added to food for human consumption, and therefore, satisfies the definition of food in paragraph 38-4(1)(e) of the GST Act, and ● the supply of the Product does not fall within any exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances: You are registered for goods and services tax (GST). You manufacture and sell the Product. The Product is available from your website or from selected stockists in Australia and other parts of the world. The Product contains various ingredients. You directed us to your website for additional information on the use of the Product. The Product is added to food for human consumption. The Product is sold in retail quantities.

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)(c). | A New Tax System (Goods and Services Tax) Act 1999 Paragraph 38-3(1)(e). | 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)(e). | A New Tax System (Goods and Services Tax) Regulations 1999 Regulation 38-3.02. | A New Tax System (Goods and Services Tax) Regulations 1999 Subregulation 38-3.02(1). | A New Tax System (Goods and Services Tax) Regulations 1999 Paragraph 38-3.02(2)(a).