Private ruling: Goods & Services Tax and Food
Published: June 2015

Ruling: Q1: Is the supply of your range of savoury snacks a GST-free supply of food? | A1: No | Q2: Is the supply of your range of fruit snacks a GST-free supply of food? | A2: Yes

Relevant facts and circumstances: • You are registered for Goods and Services Tax. • You are a wholesaler of food products. • You are distributing a range of snack food products that are aimed at a specific age group. • The products are a range of savoury and fruit snacks.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 38-2, | A New Tax System (Goods and Services Tax) Act 1999 38-3, | A New Tax System (Goods and Services Tax) Act 1999 38-4 and | A New Tax System (Goods and Services Tax) Act 1999 Schedule 1.

Reasons for decision: Summary: 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 and the supply is not excluded from being GST-free by section 38-3 of the GST Act. One of these exclusions is if the food is of a kind listed in Schedule 1 of the GST Act. The definition of food in section 38-4 of the GST Act includes food for human consumption, whether or not requiring processing or treatment. The range of snacks you intend to distribute is food for human consumption. However, paragraph 38-3(1)(c) of the GST Act provides, amongst other things, that a supply of food is not GST-free if it is a supply of: • food of a kind specified in the third column of the table in clause 1 of Schedule 1, or food that is a combination of one or more foods at least one of which is food of such a kind . Therefore, the supply of your snacks is a GST-free supply of food unless it is food of a kind specified in the third column of the table in Schedule 1 of the GST Act. Item 18 of the table in Schedule 1 of the GST Act includes 'food similar to that covered by item 15 or 16, whether or not it consists wholly or partly of any vegetable, herb, fruit, meat, seafood or diary product or extract and whether or not it is artificially flavoured'. Item 18 is very wide in scope and broadens the range of products that are similar to those listed in item 15 or item 16 by specifying that it does not matter what the composition or ingredients of the products are. Item 15 of the table in Schedule 1 of the GST Act includes 'potato crisps, sticks, or straws, corn crisps or chips, bacon or pork crackling or prawn chips'. The word 'similar' is not a defined term in the GST Act however the Macquarie Dictionary defines the term as: having likeness or resemblance, especially in a general way. Your range of savoury snacks are similar to food items listed under item 15 of Schedule 1 of the GST Act, being a snack that has a likeness or resemblance in a general way to such food items. We therefore consider your range of savoury snack products fall under item 18 of Schedule 1 of the GST Act and are not GST-free. Your range of fruit snacks are food for human consumption. Food for human consumption is GST-free unless it is excluded by section 38-3 of the GST Act. One of these exclusions is if the food is of a kind listed in Schedule 1 of the GST Act. We take the view that your range of fruit snacks is not food of a kind that appears in any category of Schedule 1 of the GST Act. Further, the supply of your range of fruit snacks is not excluded from being GST-free under any of the other paragraphs in section 38-3 of the GST Act.