Private ruling: GST and food
Date of advice: 24 June 2022
Published: October 2022

Ruling: Q1: Is the supply of the specified products (the Products) a GST-free supply for the purposes of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. 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 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 and includes food for human consumption (paragraph 38-4(1)(a) of the GST Act). However, under paragraph 38-3(1)(c) of the GST Act, 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, or food that is a combination of one or more foods at least one of which is food of such a kind. In this case based on the information provided, the supply of the Products is GST-free as the Products: • meet the definition of food in section 38-4 of the GST Act, and • are not exclude from being GST-free by paragraph 38-3(1)(c) of the GST Act.

Relevant facts and circumstances: You are registered for GST. You have developed the Products for sale in Australia. The texture of the Products is that of dried bread. The Products are made by mixing the dry ingredients such as flour, malt, yeast and water to form a dough before being formed to the required shape, proofed to size and baked to the desired colour and texture. The Products are not marketed as biscuit goods, nor are they intended to be sold as such. You provided images of the packaging of the Products as well as samples of the Products.

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