Private ruling: GST and food
Published: April 2014

Ruling: Q1: Would your supply of the food items listed in the facts be GST-free if you were to register for goods and services tax (GST)? | A1: Yes.

Relevant facts and circumstances: • You are not registered for goods and GST but you do have an Australian business number. • Several food items are to be manufactured and sold by you. • The Products consist of various fruits and nuts. • The products come in small bags. • Although the products are chilled during the manufacturing process, they are not sold chilled. • The products are not marketed or sold as confectionery in any way. • None of the products will be consumed on the premises from where they are manufactured.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 (GST Act) Section 38-2 | Section 38-3.

Reasons for decision: Summary: A supply of food is GST-free under section 38-2 of the GST Act but the food must not be excluded by section 38-3 of the GST Act. In your case, your products would be excluded under 38-3 of the GST Act only if they could be considered as a type of muesli bar or a product that is similar to confectionery. With reference to the ingredients used in making the products and the size and marketing of the products, we have concluded that the products do not have the necessary characteristics to be considered as either a type of muesli bar or as confectionery. Given this, your supply of the food items would be GST-free under section 38-2 of the GST Act if you were to register for GST.