Private ruling: GST and food
Date of advice: 11 June 2021
Published: August 2021

Ruling: Q1: Is the supply of 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. In this case, 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, and • the supply of the Products does not fall within any exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances: You supply meat snacks to the Australian market. You are registered for GST. The Products are seasoned and dried. The meat is sliced in varying sizes prior to the drying process. The Products have a chewy texture. You provided details about the different flavours and package sizes of the Products, along with images of the packaging. You also provided the manufacturing process for the Products. The Products are not marketed and/or promoted yet as they are not currently launched in the Australian market. The Products are not sold to supermarkets yet, but if successful they will be located near the salty snacks.

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.