Private ruling: GST and food
Date of advice: 11 March 2022
Published: May 2022

Ruling: Q1: Is the supply of 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 section GST Act. The supply of the Product is GST-free under section 38-2 of the GST Act because: • the Product satisfies the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption (whether or not requiring processing or treatment), and • the supply of the Product does not fall within any of the exclusions in section 38-3 of the GST Act. | Q2: Is the importation of the Product a non-taxable importation under paragraph 13-10(b) of the GST Act? | A2: Yes. Paragraph 13-10(b) of the GST Act provides that an importation is a non-taxable importation to the extent that, had it been a supply, the supply would have been a GST-free or input taxed supply. The importation of the Product is a non-taxable importation under paragraph 13-10(b) of the GST Act because, as outlined in Question 1, had it been a supply, it would have been GST-free.

Relevant facts and circumstances: • You are importing the Product . • You are registered for GST. • The ingredients are water, grains and yeast. • You provided pictures and samples of the Product. • You provided the manufacturing process. • The Product can be eaten on its own or mixed with other ingredients to make dessert or breakfast food. • The Product is shelf-stable and kept at room temperature. • The Product is sold in the pantry products section of a supermarket.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 13-5. | A New Tax System (Goods and Services Tax) Act 1999 Paragraph 13-10(b). | 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 Paragraph 38-4(1)(a). | A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, clause 1, table.