Private ruling: Goods and services tax (GST) and sale of snacks
Date of advice: 15 September 2016
Published: November 2016

Ruling: Q1: Are your sales of the specified food products GST-free? | A1: Yes. Your sales of the products in question are GST-free because: • the products are food for human consumption under section 38-4 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), and • the exclusions in section 38-3 of the GST Act do not apply to these products.

Relevant facts and circumstances: You are registered for GST. You supply a range of food products under the specified brand name. You are introducing a new range of products into the marketplace. The product is a textured snack. In composition, the product is by majority made up of a specified ingredient, with the addition of a small amount of other specified ingredients to add flavour without changing the character of the products. There is no added sugar in the product. Water is not added. The product is not a beverage, nor a replacement for a beverage. It was created and meant to be more filling than a drink or smoothie. The viscosity of the product is like a puree. The product can be consumed over a number days. While the products are 'best served chilled', they do not have to be chilled and do not require refrigeration or freezing for storage. Each product weights a specified amount. The products are not puddings. The products are not meals. You promote the products as snacks.

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 section 38-4