Private ruling: GST and food
Date of advice: 15 November 2017
Published: January 2018

Ruling: Q1: Is the supply of the specified salad GST-free pursuant to subdivision 38-A of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: The supply of the specified salad is GST-free.

Relevant facts and circumstances: The product is made up of a mixture of vegetables and other ingredients. You provided information regarding the ingredients and the method of preparation. The product requires no further mixing or treatment other than being served to customers for consumption as part of a larger meal. The product is not sold as a prepared meal.

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 paragraph 38-3(1)(c) | New Tax System (Goods and Services Tax) Act 1999 section 38-4

Reasons for decision: Summary: The supply of the specified salad is GST-free. | Detailed Reasoning - Detailed reasoning: A supply of food is GST-free under section 38-2 GST Act if it satisfies the definition of food in section 38-4 of the GST Act and it does not come within any of the exclusions in 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). The salad is food for human consumption and, therefore, satisfies the definition of food in section 38-4 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 a food of a kind that is specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1). Of specific relevance is item 4 of Schedule 1 (Item 4), which provides that ‘food marketed as a prepared meal, but not including soups’ is not GST-free. In your case, you advised that you are supplying a salad that is not marketed as a prepared meal. Therefore, the salads are not covered by Item 4. Furthermore, the salads are not covered by any other item is Schedule 1, nor do they come within the range of exclusions mentioned in section 38-3 of the GST Act. Accordingly, you are making a GST-free supply under section 38-2 of the GST Act when you sell these salads.

This notice must not be taken to imply anything about: | ● the binding nature of the private advice issued to the applicant | ● the correctness of other edited versions. | Edited versions cannot be relied upon as precedent or used for determining how the ATO will apply the law in other cases.