Private ruling: GST classification of food product
Published: March 2015

Ruling: Q1: Is the supply of your food product subject to goods and services tax (GST)? | A1: No.

Relevant facts and circumstances: • You are registered for GST. • You carry on an enterprise of manufacturing and distributing food items. • You intend to sell a new food product. The label on your food product provides that you spread your food product onto bread or similar items. • Your food product is to be marketed predominately as a spread. • The product will be sold by you from the spreads section of supermarkets.

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 Section 38-4. | A New Tax System (Goods and Services Tax) Act 1999 Schedule 1

Reasons for decision: Summary: Section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) states that a supply of food is GST-free. The term 'food' is defined in section 38-4 of the GST Act Some foods are not GST-free in accordance with section 38-3 of the GST Act. These include 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. Your food product is considered goods to be mixed with or added to food for human consumption under paragraph 38-4(1)(e) of the GST Act. Furthermore, it does not fall within section 38-3 of the GST Act. It is therefore GST-free.