Private ruling: GST and supply of snacks
Date of advice: 7 September 2015
Published: September 2015

Ruling: Q1: Is the supply of the snacks in different flavours (snacks) GST-free? | A1: Yes. Under section 38-2 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act), a supply of food is GST-free. The meaning of the term food for GST purposes is defined in section 38-4 of the GST Act. This definition of food includes food for human consumption, whether or not it requires processing or treatment. The snacks are food for human consumption, and therefore satisfy the definition of food under section 38-4 of the GST Act. However, under paragraph 38-3(1)(c) of the GST Act, certain supplies of food are not GST-free if it is food of a kind specified in the third column of the table in Schedule 1 of 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. The snacks are not food listed, or of a kind listed, at any of the items in Schedule 1. Additionally, they are not food that is a combination of one or more foods at least one of which is food of such a kind. Hence, the snacks are not excluded from being GST-free by paragraph 38-3(1)(c) of the GST Act. Additionally, the snacks are not excluded from being GST-free by virtue of any of the other paragraphs of subsection 38-3(1) of the GST Act. Therefore, the snacks are GST-free under section 38-2 of the GST Act.

Relevant facts and circumstances: • You are registered for the goods and services tax (GST). • You carry on an enterprise. • The snacks are puff grains. • The snacks' height varies around the perimeter. • The snacks include flavours and seasoning. • The snacks come in various flavours.

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 paragraph 38-3(1)(c) | 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