Private ruling: GST and juice concentrate
Date of advice: 28 July 2021
Published: October 2021

Ruling: Q1: Is your supply of the fruit juice concentrate mix (the Products) 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 section GST Act. The supply of the Products is GST-free under section 38-2 of the GST Act because:

Relevant facts and circumstances: You are an Australian company which is registered for goods and services tax (GST). The Products are fruit juice concentrate to make fruit drinks. The Products can also be used to make milkshakes, smoothies, jelly, fruit sparkling juice, frozen fruit drinks, cakes, pudding etc. You will supply the Products to businesses such as school tuckshops, restaurants and cafes to make fruit juice drink. You provided pictures of the Products' flavours including the ingredients and labels. The Products contain more than 90% by volume of juices of fruits. The labels provide that the fina l drink will contain 100% reconstituted fruit juice when diluted according to directions. The preparation direction is as follows: • Shake well. • Mix a specific part of fruit juice concentrate with a specific part of water. The storage direction is as follows: • Store in cool and dry place, away from sunlight. • Once opened, store refrigerated and consume within 7 days.

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)(d) | 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)(d). | A New Tax System (Goods and Services Tax) Act 1999 Schedule 2, Item 10


the Products satisfy the definition of food in paragraph 38-4(1)(d) of the GST Act as ingredients for beverages for human consumption and | the supply of the Products does not fall within any exclusions in section 38-3 of the GST Act.