Private ruling: GST-free supplies of food

Ruling: Q1: Will supplies of a beverage containing 99.9% particular fruit juice, be GST-free under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? Yes.



Reasons for decision: Detailed Reasoning - Question 1: Supplies of the product will be GST-free under the GST Act. In accordance with section 9-30 of the GST Act a supply is GST-free if it is GST-free under Division 38 or under a provision of another Act. Division 38 of the GST Act provides that a supply of food is GST-free (section 38-2). Food includes beverages for human consumption (section 38-4). A beverage means a drink of any kind (GSTD 2002/2). However, a supply is not GST-free under section 38-2 of the GST Act if it is a supply of a beverage (or ingredient for a beverage), other than a beverage (or ingredient) of a kind specified in the third column of the table in clause 1 of Schedule 2. Therefore to be GST-free, a beverage needs to fit within the descriptions in the table in clause 1 of Schedule 2. This table considers fruit and vegetable juices, and at item 12 it provides that non-alcoholic, non-carbonated beverages that consist of at least 90% by volume of juices of fruits or vegetables are GST-free. As your product is a non-alcoholic, non-carbonated juice that is at least 90% by volume of fruit juice, it is GST-free. An appropriate GST exemption code may be used to facilitate the importation (AB12). Subsequent sales of the unaltered beverage will be GST free.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | Relevant facts: · You are registered for GST. | · You will import a pre-packaged beverage. | · The beverage is ready to drink and contains 99.9% particular fruit juice. | · The beverage is non-carbonated. | · You will sell the beverage in major supermarkets in Australia.