Private ruling: GST and food
Date of advice: 17 May 2021
Published: August 2021

Ruling: Q1: Is the supply of the cheese bread (the Product) GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. 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. The supply of the Product is GST-free under section 38-2 of the GST Act because:

Relevant facts and circumstances: You will supply the Product. You are registered for GST. You describe the Product as traditional flat bread, frozen with added cheese for soft texture and cheesy flavour. The Product has a soft fluffy bread texture, with a round shape which is white to golden brown in colour. You provided details about the Product, including the ingredients, images of the packaging and the food items. • delicious cheese filled bread baked in an oven • everybody's favourite cheesy bread • heating options - on the stove top or in the oven You provided the ingredient list for the "filling" which make up a small percentage of the total. You provide details about how the Product is manufactured. • mixing of dry ingredients, including wheat flour, semolina, sugar, salt, pepper and baking powder, with water to make dough. • cut dough into portions, sprinkle cheese on the dough, folding and roll using rolling pin. • bake in oven for a few minutes until cooked. • freeze the bread then pack and ship. The Product will be sold in the freezer section of supermarkets. Customers purchase the Product frozen and must store in their freezers at home. When the Product is to be consumed, it can be either toasted in the oven or on a pan. The Product is usually accompanied with something to make it a meal.

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 section 38-4. | A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, Clause 1, table.


the Product satisfies the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption and | the supply of the Product does not fall within any other exclusions in section 38-3 of the GST Act.