Private ruling: GST and food products
Date of advice: 28 May 2021
Published: August 2021

Ruling: Q1: Is the supply of the fruit loaf (the Product) 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 section 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 a producer of bakery products. You intend to release the Product into the Australian market shortly. You provided an image of the Product and its packaging. You provided information about the Product, including the ingredients, nutritional Information and labelling information. You provided details about how the Product is manufactured. The Product contains fruit pieces which are mixed with the dough before baking. The Product is not covered with any type of sweet coating. The Product does not have a sweet filling. The Product has a soft texture with an internal crumb like bread and will have a crunchy texture when toasted.

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.


the Product satisfies the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption (whether or not requiring processing or treatment), and | the supply of the Product does not fall within any of the exclusions in section 38-3 of the GST Act.