Private ruling: GST-free supply of food
Published: July 2011

Ruling: Q1: Are you making a GST-free supply under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when you sell the mix (Mix)? | A1: Yes

Relevant facts and circumstances: You are registered for the goods and services tax (GST). You are to sell a product called the Mix. The Mix is not to be consumed at the retail premises from which it is sold and nor is it hot food for consumption away from those premises.


Reasons for decision: Summary: The supply by you of the Mix is a GST-free supply of food. | Detailed Reasoning - Detailed reasoning: 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. Food is defined in section 38-4 of the GST Act to include food for human consumption (whether or not requiring processing or treatment) (paragraph 38-4(1)(a) of the GST Act). The Mix is food for human consumption and therefore, satisfies the definition of food in paragraph 38-4(1)(a) of the GST Act. However, paragraph 38-3(1)(c) of the GST Act provides that food is not GST-free if it is food of a kind specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1) or food that is a combination of one or more foods, at least one of which is food of such a kind. The Mix is not covered by the excluding provisions of paragraph 38-3(1)(c) of the GST Act. Furthermore the Mix is not consumed at the premises from which it is sold and nor is it hot food to be consumed away from those premises and hence is not excluded form being treated as GST-free by the operation of paragraphs 38-3(1)(a) and 38(3)(1)(b) of the GST Act. In addition, the supply of the Mix does not fall within any of the other exclusions in section 38-3 of the GST Act. As such you are making a GST-free supply under section 38-2 of the GST Act when you sell the Mix.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.