Private ruling: GST and supply of powder blend
Date of advice: 24 May 2022
Published: August 2022

Ruling: Q1: Is the supply of the Product GST-free pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. Under section 38-2 of the GST Act a supply of food is GST-free 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. The supply of the Product is GST-free under section 38-2 of the GST Act because:

Relevant facts and circumstances: You are launching a new powder blend to add to your current range of blends. The Product is a smooth powder with a close to neutral taste slightly tasting of fruit and bean. The Product has a variety of nutrients including protein. The Product is used to add extra nutrition to any food such as yoghurt, cereal and smoothie. You sell your Product online. You provided pictures of the Product's container and the powder: The ingredients are bean protein and a particular fruit.

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 Paragraph 38-4(1)(a). | A New Tax System (Goods and Services Tax) Act 1999 Schedule 1 clause 1.


the Product is food for human consumption within the meaning of food under paragraph 38-4(1)(a) of the GST Act and | the supply of the Product does not fall within any of the exclusions in section 38-3 of the GST Act.