Private ruling: GST and food products
Date of advice: 18 June 2021
Published: August 2021

Ruling: Q1: Is the supply of the cooked meat and sauce range (the Products) 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 Products is GST-free under section 38-2 of the GST Act because: • the Products satisfy 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 Products does not fall within any of the exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances: You sell the Products and are registered for GST. The Products are ready to eat and are intended for general consumption. You describe the Products as a perfect snack for any time of the day. You provided product information sheets which show the available variants. • The Products are single serve snack consisting of a number of pieces of cooked meat strips and a tub of dipping sauce. • The Products are in clear plastic trays with two compartments. One compartment contains the meat and the other compartment contains the tub of sauce. • The meat is baked not fried. • The Products are advertised as handy snacks which can be eaten cold or hot. • The Products do not require cooking or heating for consumption but can be consumed chilled or after heating in the microwave. The Products are sold in the cheese dairy section of supermarkets. The Products require refrigeration and are sold chilled.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5. | 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