Private ruling: GST and prepared meals
Date of advice: 1 September 2025
Published: 3 November 2025

Ruling: Q1: 1. Is your supply of Product 1 and Product 2 ( Products) a GST-free supply under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? 2. Is your importation of the Products a non-taxable importation under section 13-10 of the GST Act? | A1: 1.Your supply of the Products is not GST-free as it is excluded from being GST-free under paragraph 38-3(1)(c) of the GST Act. 2.Your importation of the Products is a taxable importation under subsection 13-5 (1) of the GST Act.

Relevant facts and circumstances: You are registered for GST. You import the Products from the overseas manufacturer and supply the Products in Australia: The Products will be sold in the freezers of supermarkets, and to foodservice industry. You provided photos of the packaging, the price of the Products, the sample and the manufacturing process. The manufacturing process shows that the Products are cooked before being frozen and packed . The cooking instructions provide that the Products can be heated in the microwave oven or on the cooktop and served .

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 (GST Act): section 38-2 | section 38-3 | paragraph 38-3(1)(c) | section 38-4 | paragraph 38-4(1)(b) | section 9-5 | section 13-5 | section 13-10 | Schedule 1 clause 1 table item 4 | Answers | 1. No, your supply of the Products is not GST-free as it is excluded from being GST-free under paragraph 38-3(1)(c) of the GST Act. Cooked pasta dishes sold complete with sauce, are food of a kind marketed as prepared meals under item 4 of the table in schedule 1 of the GST Act (Item 4). | 2. No, your importation of the Products does not meet the non-taxable importation requirement of subsection 13-10(b) of the GST Act because the supply of the Products is not GST-free. As such, your importation of the Products is a taxable importation under subsection 13-5 (1) of the GST Act. | Detailed reasoning | 1.The supply of the Products | Relevant Legislation | 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. | Pursuant to paragraph 38-3(1)(c) of the GST Act, food is not GST-free under section 38-2 of the GST Act if it is a supply of food of a kind specified in the third column of 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. Relevant to paragraph 38-3(1)(c) and the Products, is the category of 'Prepared food' in Schedule 1 and more specifically, Item 4 which is: | *food marketed as a prepared meal, but not including soup | Applicable to prepared food and meals, are clauses 2 and 3 of Schedule 1 which state: | 2 Prepared food, bakery products and biscuit goods | For the purpose of determining whether particular *food is covered by any of the items in the table relating to the category of prepared food, bakery products or biscuit goods, it does not matterwhether it is supplied hot or cold, or requires cooking, heating, thawing or chilling prior to consumption. | 3 Prepared meals | Item 4 in the table only applies to *food that requires refrigeration or freezing for its storage. | The Products require freezer for storage and are sold cold, requiring cooking and heating prior to consumption. As such Clause 2 and clause 3 of Schedule 1 are satisfied, and they do not preclude the Product from being covered by Item 4. | The Products are not soups. | As such, it is necessary to consider whether the Products are food of a kind that is marketed as a prepared meal in section 38-3(1)(c) of the GST Act. Whether a product is food of a kind marketed as a prepared meal | The current ATO view post Simplot | The public ruling GSTD 2025/1 - Goods and services tax: supplies of food of a kind marketed as a prepared meal (the GST Determination) provides the Commissioners view on what products are food of a kind marketed as a prepared meal. It explains the Commissioners view primarily by reference to the Federal Court's decision in Simplot Australia Pty Limited v Commissioner of Taxation [2023] FCA 1115 ( Simplot) and provides the following | principles: | 21. In determining whether a product is food of a kind marketed as a prepared meal, the statutory question is a 'single composite question' - that being, is the product food of a kind that is marketed as a prepared meal ? | 22. Answering the statutory question requires considering what is meant by food being food of a kind marketed as a prepared meal, followed by an assessment of whether the product in question falls within that class or genus. | 23. The question is not whether the product itself is marketed as a prepared meal, but whether the product is a member of a class or genus of foods that are marketed as prepared meals. This means it is necessary to consider the kinds of food that are marketed as a prepared meal. | 24. The attributes of a prepared meal and the kinds of food that are marketed as a prepared meal are to be determined by common sense and common experience. This is to be determined objectively by considering the attributes of products that are marketed as prepared meals, including quantity, composition and presentation. | 25. Whether a particular product falls within the class or genus of foods that are marketed as prepared meals cannot be determined by viewing individual attributes in isolation or without context. The test is how the product as a whole is perceived objectively, informed by common sense and common experience, and an overall consideration of its attributes. | 26. The test of 'common sense and common experience' is a composite objective judgment to be made against what is understood and observed by people generally. Application of the test depends on how reasonable people are taken to understand the attributes of the class or genus, as well as the attributes of the particular product in question. The test is not concerned with narrow perceptions or fringe views. | 27. Whether the product in question is 'food of a kind marketed as a prepared meal' requires an overall assessment of how that product and similar ones are marketed across the food industry. As a matter of common sense and common experience, how are products of that kind marketed? What do the facts and evidence tell people generally about how products of this kind are marketed by entities in the food industry, including supermarkets, grocery stores, food courts, takeaway outlets, cafés and restaurants? | The Detailed Food List (DFL) , which is a public ruling for the purpose of the Taxation Administration Act 1953 , also relevantly states in relation to pasta products as follows: Detailed Food List ID | Item | GST status | Note | 1859 | pasta product with sauce or dressing (including a pasta salad) that: | • is sold cooked and needs refrigeration or freezing for its storage; and | • contains instructions for heating (even if heating is optional) | taxable | Schedule 1, item 4 of the GST Act applies, as the product is food of a kind marketed as a prepared meal (refer GSTD 2025/1). | Examples include macaroni and cheese, pesto and tomato-based sauce with cooked pasta where the products include heating instructions (even if the product can also be eaten cold) | 562 | pasta without sauce (fresh, frozen or dried, but not hot). Does not apply to crispy pasta snacks | GST-free | Food for human consumption that is not of a kind specified in Schedule 1 of the GST Act. Not food of a kind: • marketed as a prepared meal (refer GSTD 2025/1), or | • covered by item 18 of Schedule 1. | Application to the Products | Based on the principles outlined in the GST Determination, a product will be food of a kind marketed as a prepared meal if it is the kind of food that, as a matter of common sense and common experience, is marketed as a prepared meal. This is determined objectively by considering the attributes of the product, including quantity, composition and presentation. | Quantity | The term 'quantity' is discussed in paragraphs 48 - 53 of GSTD 2025/1. | As a matter of common sense and common experience, a product is not food of a kind marketed as a prepared meal unless it is of a sufficient quantity for a meal. | The following considerations are relevant regarding the quantity of a product: | The product need not be a substantial or big meal - a light or small meal is still a meal. | What will be a 'quantity of substance' will vary based on the product in question. | Products that are presented as being for consumption by a particular group (for example, babies and children) or that is commonly consumed on a particular occasion (for example, breakfast) need to be considered in light of that context. A quantity of food may be of sufficient quantity when presented as a meal for infants, even if the same quantity might not be sufficient as a meal for adults. | The product may be marketed as a snack, or a kind of food that can be eaten as a snack, and still be food of a kind that is marketed as a prepared meal | The Products have serving size of AxB g portions in C kg bags. The total product weight of C kg bag is a sufficient quantity for a meal. This is not impacted by the recommended serving size described on the packaging. While the Products are not pre-portioned and are provided in quantities that are more than what one person would be expected to consume as a meal (C kg), neither of these factors affect whether they are food of a kind marketed as a prepared meal. | Composition | The term 'composition' is discussed in paragraphs 54 - 57 of GSTD 2025/1, instructing that it is necessary to consider the nature of the ingredients or elements and not simply the number of ingredients or elements. In practice, applying common sense and common experience involves considering whether the product has a similar composition to products sold as a prepared meal by entities in the food industry. | A product is more likely to be food of a kind marketed as a prepared meal where it is made from multiple ingredients or elements. It is a matter of fact and degree whether a particular combination of ingredients or elements constitutes a meal. | The Products in the present case consist of multiple ingredients/elements. | As expressed in the GST Determination, applying common sense and common experience involves considering whether the product has a similar composition to products sold as a prepared meal by entities in the food industry. For example, in Simplot, the Court characterised the products as pasta in sauce, risotto or fried rice and observed that these types of foods are, as a matter of common sense and common experience, foods of a kind marketed as a prepared meal. | The manufacturing process of Product 1 indicates that all ingredients are cooked, including the sauce. | Based on the ingredients list, Product 1 offers a balance of cooked ingredients including.... These ingredients are often found in prepared meals such as pasta with sauce that are as a matter of common sense and common experience, foods of a kind marketed as a prepared meal. | Product 2: | The manufacturing process of Product 2 indicates that all ingredients are cooked, including the sauce. | Based on the ingredients list, Product 2 offers a balance of cooked ingredients including ...and filling made from ....cooked in a sauce. These ingredients are often found in prepared meals such as pasta with sauce that are as a matter of common sense and common experience, foods of a kind marketed as a prepared meal. | Presentation | The term 'presentation' is discussed in paragraphs 58 - 66 of GSTD 2025/1. | A product's presentation will indicate it is food of a kind marketed as a prepared meal if it is presented as being complete. Being 'complete', in this context, involves both the degree of preparation and whether the product is supplied with all necessary inclusions to be a complete 'meal'. | A product should be 'complete' in the sense of being prepared and should require only limited further preparation, assemble or activity by the consumer. Relevant principles are: | • If cooking or heating is required for the product to be ready for consumption, this should only require limited activity by the consumer, such as cooking or heating in a microwave, oven, frying pan or saucepan. Simply heating a product and stirring regularly during the process will not mean, by itself, that the product is not sufficiently prepared. This will apply even where these activities are required to complete the cooking process for a partly cooked product. | • Where a product requires certain actions by the consumer, particularly where more than one of those is require, this may point to a conclusion that the product is not sufficiently prepared - | - Chopping, peeling, or otherwise preparing the ingredients | - Cooking different ingredients or elements separately or using different methods or cooking a product which contains raw ingredients where this requires active involvement of the consumer like stirring, monitoring, adjusting temperate, and the staged addition of different ingredients. | • The fact that a consumer needs to combine the ingredients or elements before consumption of itself does not mean the product is not sufficiently prepared to be 'complete'. | Product 1: | According to the cooking instructions on the labelling of the packaging of Product 1, it is presented as ready to be served with minimum preparation, you can either pan fried and add water to heat it through, or you can microwave it. There are also serving suggestions on the packaging to combine Product 1 with other ingredients. | Relevantly, GSTD 2025/1 states: | 61. Where a product includes all required seasonings, sauces or flavourings, this is an indicator that the product is presented as complete. Recommendations or instructions to add water or oil when cooking or heating do not mean that the product is not sufficiently prepared or complete. | 62. A serving suggestion on the packaging of a product, while a relevant aspect of the product's marketing, is not determinative of whether it is presented as being complete. The products in Simplot were considered to be sufficiently complete, for the purpose of table item 4, even though they contained suggestions that they be served with the addition of protein (for example, chicken or fish). Similarly, a stew or casserole product may be sufficiently complete even though the product contains a suggestion that it be served with rice or other accompaniment. | Applying the above principles, we do not consider the instructions to add water while heating Product 1 and the suggestions to serve Product 1 with other food are strong indicators for Product 1 being not sufficiently prepared or complete. Pastas with sauce are not a product that is usually served with accompaniments. Such products are regularly served on their own. | Product 1 is sold fully assembled with all necessary inclusions, the ingredients are already cooked during the manufacturing process and require limited preparation before consuming. | Furthermore, Product 1 has similarities to 'cooked pasta dishes sold complete with sauce' which is listed in the Further Supplementary Explanatory Memorandum to the A New Tax System (Goods and Services Tax) Bill 1998 (the EM) at [1.33] as a prepared meal. | Our conclusion that Product 1 is food of a kind marketed as a prepared meal is consistent with the Example 5 of GSTD 2025/1 where the product in this example has similar cooking instructions as Product 1, including the stirring action while heating the food before consuming: | Example 5 - presentation - sufficiently prepared | 90.Manufacturer Ltd makes and sells a frozen pasta product containing chicken, vegetables, pasta and sauce. The product is sold in a 400-gram bag and has been partly cooked. The instructions on the bag say that the product should be: | microwaved in a covered microwave-safe container on high for 6 minutes, stirred and microwaved for a further 4 minutes, or | cooked in a covered pan on the stove-top for 15 minutes, stirring as necessary. | 91. The pasta product has the attributes of a prepared meal, including sufficient quantity, composition and presentation. As a matter of common sense and common experience, pasta in sauce with chicken and vegetables is a kind of food that is marketed as a prepared meal. | 92. While the pasta product is not fully cooked at the point of sale, this does not prevent it from being sufficiently prepared. Completion of the cooking process can be achieved by alternate methods, both of which constitute limited further preparation and activity by the consumer as the product is partly cooked at the point of sale. | 93.The pasta product is food of a kind marketed as a prepared meal | In addition, the very nature of a prepared meal is that it is quick and easy to get ready for consumption, as opposed to preparing the meal yourself using various fresh food items. A prepared meal would contain all or many of the components that would be included in a complete meal, such as those provided by a restaurant or takeaway outlet, and only minimal preparation would be required for the meal to be ready for consumption. The labelling on the package of Product 1 markets Product 1 in a way that indicates consumers will be ready to be served with minimal cooking time. | Product 1 has the attributes of a prepared meal, including sufficient quantity, composition and presentation. As a matter of common sense and common experience, the overall impression of a food such as Product 1 is that it falls within a class or genus of food marketed as prepared meals. | Product 2: | The following is the cooking instructions on the labelling of the packaging of Product 2.... | There are also serving suggestions on the packaging to combine Product 2 with other ingredients. | Similar to the discussion above on Product 1, applying the principles in GSTD 2025/1, we do not consider the instructions to add oil/butter and water while heating Product 2 is a strong indicator for Product 2 being not sufficiently prepared or complete. | Regarding the stirring action in the cooking instructions for both Products 1 and 2, Example 5 in GSTD 2025/1 (quoted above) states that when the cooking instructions provide: ' cooked in a covered pan on the stove-top for 15 minutes, stirring as necessary', the food is still considered to be sufficiently prepared, because the ingredients require limited preparation. | Likewise, a serving suggestion with other food on the packaging of a product, while a relevant aspect of the product's marketing, is not determinative of whether it is presented as being complete. Pastas with seasoned filling cooked in sauce are not a product that is usually served with accompaniments. Such products are regularly served on their own. | Product 2 is sold fully assembled with all necessary inclusions, the ingredients including the sauce are already cooked during the manufacturing process and require limited preparation before consuming. A food product that is supplied already cooked, complete with sauce, is considered 'sufficiently prepared' or 'complete'. | Furthermore, Product 2 has similarities to 'cooked pasta dishes sold complete with sauce' which is listed in the Further Supplementary Explanatory Memorandum to the A New Tax System (Goods and Services Tax) Bill 1998 (the EM) at [1.33] as a prepared meal. | The manufacturing process of Product 2 shows it has a seasoned filling made from ...cooked in a sauce. In our view, Product 2 is similar to Product 1 in that both are pasta with sauce, and the only difference is the sauce in Product 1 surrounds the pasta while the sauce in Product 2 is inside its filling. | To address your contention that the Products require further cooking and hence are not prepared meals, this is an example in GSTD 2025/1 to show when a food is not sufficiently prepared: | Example 6 - presentation - not sufficiently prepared | 94.Wholesaler Ltd sells meal preparation kits that contain all the ingredients necessary to make a meal. Each kit is accompanied by step-by-step cooking directions. The Chicken Stir-Fry kit comes with raw chicken, fresh chopped vegetables and a packet of sauce. | 95.The product's presentation is not consistent with that of a prepared meal as it is not presented as complete. Even though the product is prepared to some degree and contains all the necessary ingredients for a meal, the ingredients require more than limited preparation, assembly and activity by the consumer before consumption. The chicken and vegetables are raw and cooking the product requires active involvement of the consumer, including stirring, monitoring, adjusting temperature and the staged addition of different ingredients to ensure the meal is fully cooked. | 96.As a matter of common sense and common experience, a product containing raw chicken, fresh chopped vegetables, and a packet of sauce is not a kind of food that is marketed as a prepared meal. | 97.The Chicken Stir-Fry kit is not food of a kind marketed as a prepared meal. | Contrast to the product in Example 6, and similar to Product 1 discussed above, Product 2 has the attributes of a prepared meal, including sufficient quantity, composition and presentation. As a matter of common sense and common experience, the overall impression of such a foodis that it falls within a class or genus of food marketed as prepared meals. | Your own marketing of the Products | For completeness, the conclusion that Products 1 and 2 are food of a kind marketed as a prepared meal is consistent with your own marketing of these products. | You promoted Product 1 by the wordings on the packaging as follows: '......'. | Further, this is an example of how Product 1 is marketed on the website, t his indicates that you marketed Product 1 as first course or lunch, with a balance of ingredients which can simply be heated before consuming. | Product 2 is marketed on the website, the marketing indicates that you marketed Product 2 as a prepared meal, with a balance of ingredients which are ready to eat because they can simply be ... before consuming. | Despite the marketing of the Products as a first course, this does not mean that the Products cannot also be food of a kind that is marketed as a prepared meal. We note Simplot at [130] and Lansell House 2011 at [7) referred to in paragraphs 31 and 32 of GSTD 2025/1 as follows: | 31. In determining whether a product is of a kind marketed as a prepared meal, it does not matter whether the product may also be of some other kind. For example, in Simplot , the fact that the products could be described as food marketed as a meal component or side dish did not mean they could not also be food of a kind that is marketed as a prepared meal. Simplot at [130]. | 32. Similarly, the fact that a product is marketed as a snack does not mean it could not also be food of a kind marketed as a prepared meal. Determining whether a product is a side dish, meal component or snack will not assist in answering the statutory question, which is whether the product is food of a kind marketed as a prepared meal. | Conclusion | Taking into consideration the factors set out above and following a commonsense approach, the overall impression is that both Products 1 and 2 fall within a class or genus of food marketed as prepared meals or a kind of food that is marketed as a prepared meal under Item 4 of Schedule 1. As such, they are excluded from being GST-free by paragraph 38-3(1)(c) of the GST Act. It follows that the supply of the Products is a taxable supply under section 9-5 of the GST Act. 2. The importation of the Products | GST is payable on taxable importations. Subsection 13-5 (1) of the GST Act provides that you make a taxable importation if: a) goods are imported; and | b) you enter the goods for home consumption (within the meaning of the Customs Act 1901) . | We consider that the Products are goods imported by you. Therefore paragraph 13-5(1)(a) of the GST Act is satisfied. You acquire the Products from the supplier overseas and import them into Australia. Hence you meet the requirement of paragraph 13-5(1)(b) of the GST Act as you are the entity that enters the goods for home consumption. However, the importation is not a taxable importation to the extent that it is a non-taxable importation (subsection 13-5(3)). | Section 13-10 of the GST Act provides that an importation is a non-taxable importation if: | a) it is a non-taxable importation under Part 3-2 of the GST Act; or b) it would have been a supply that was GST-free or input taxed if it had been a supply. | The importation of the Products is not a non-taxable importation under Part 3-2 of the GST Act therefore paragraph 13-10 (a) is not met. | The importation can only be a non-taxable importation under paragraph 13-10 (b) of the GST Act if it would have been a supply that was GST-free or input taxed if it had been a supply. As concluded in question 1, the supply of the Products would be a taxable supply. As such, the importation of the Products does not meet the requirement of subsection 13-10(b) to be a non-taxable importation. | Hence the importation of the Products is a taxable importation under subsection 13-5 (1) of the GST Act.