Private ruling: GST and supply of frozen fruits
Date of advice: 7 October 2022
Published: December 2022

Ruling: Q1: Is the supply of the Product by the entity GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes , the supply of the Product is GST-free under section 38-2 of the GST Act. The supply of the Product is GST-free under section 38-2 of the GST Act because: • the Product is food for human consumption • the Product is not food of a kind listed in item 29 and 31 of Schedule 1 to the GST Act, and • the supply the Product does not fall within any of the other exclusions in section 38-3 of the GST Act. | Q2: Is the importation of the frozen fruits by a non-taxable importation under paragraph 13-10(b) of the GST Act? | A2: Yes. The importation of the frozen fruits is a non-taxable importation under paragraph 13-10(b) of the GST Act because, had it been a supply, it would have been a GST-free supply

Relevant facts and circumstances: The entity is registered for GST. The entity imports frozen cut up fruits into Australia in bulk. The fruits are re-packed and supplied to a retailer in resealable bags ( the Product ). The Product is 100% cut up fruits. The Product must be kept frozen and stored at below minus 18°C. Once thawed, it must be refrigerated below 5°C and used within 2 to 3 hours.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 , section 13-10 | 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, section 38-4