Private ruling: GST and snack food
Date of advice: 20 April 2021
Published: July 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 other exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances: You sell a range of snack food items. You are registered for GST. You provided images of the packing: • Product 1 is described as soft, succulent and perfectly seasoned shredded strips of seafood. • Product 2 is described as slightly sweet, flaky and delicate tasting seafood product You provided flow charts of how the Products are manufactured. • For Product 1, the seafood is cleaned and then dried at a certain temperature for a number of hours before roasting at a certain temperature for a few minutes. The seafood is shredded before being marinated then dried and cooled at a certain temperature for a few minutes. Product 1 is then weighed and packed. • For Product 2, the seafood is cut, cleaned and soaked before draining and adding seasoning. The seafood is then dried at a certain temperature for a number of hours before roasting at a certain temperature for a few minutes. Product 2 is then weighed and packed. The Products are sold at the supermarket and are found in the front section with ambient goods. We received samples of Product 1. The package contains shredded pieces of seafood that are moist, chewy and slightly salty and spicy.

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.