Private ruling: GST and food classification snack
Date of advice: 3 September 2015
Published: September 2015

Ruling: Q1: Is the supply of the snacks GST-free? | A1: Yes. A supply of food is GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 ( 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 GST Act. Food is defined in section 38-4 of the GST Act to include food for human consumption (whether or not requiring processing or treatment) (paragraph 38-4(1)(a) of the GST Act). As the product is food for human consumption, they satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act. However, section 38-3 of the GST Act specifies foods that are not GST-free. The relevant paragraph which may apply to the product is paragraph 38-3(1)(c) of the GST Act. The paragraph provides that a supply of food is not GST-free if it is food of a kind specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1). The products are not food of a kind specified in the table in clause 1 of Schedule 1 to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). Therefore, they are not excluded from being GST-free by paragraph 38-3(1)(c) 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