Private ruling: GST and supply of food
Date of advice: 15 July 2020
Published: August 2020

Ruling: Q1: Is the supply of the Product GST-free pursuant to 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: | Q2: Is the importation of the Product a non-taxable importation under paragraph 13-10(b) of the GST Act? | A2: Yes. Under paragraph 13-10(b) of the GST Act, an importation is classed as a non-taxable importation if it would have been a supply that was GST-free or input taxed, if it had been a 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, the supply of the Product is GST-free.

Relevant facts and circumstances: You will import and sell the Product in Australia. The Product is food but can also be used for non-food purposes. You provided a picture of the Product and the packaging includes the following information: The Product will be sold in organic shops, markets, independent supermarkets and to restaurants and cafes.

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 Section 38-4. | A New Tax System (Goods and Services Tax) Act 1999 Paragraph 38-4(1)(a).


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. | Organic 100% biodegradable | Ingredients: a particular type of grain | Cook for several minutes in the water if used as a food. | The particular weight in grams | Keep in a fresh and dry place, away from heat and light sources.