Private ruling: Food classification
Published: July 2014
Ruling period: From 01 July 2014

Ruling: Q1: Is the supply of your food product, which is not being sold as food for human consumption, GST-free? | A1: No. The supply of your food product is not GST-free, as they are not sold as food for human consumption. In accordance with section 38-2 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) a supply of food, as defined in the Act, is GST-free. In order to be considered as food under subsection 38-4(1) of the GST Act, the food product must be 'food for human consumption (whether or not requiring further processing or treatment)' or 'ingredients for food for human consumption'. Your food product, is not excluded by paragraph 38-4(1)(g) of the GST Act from being food for the purposes of the GST Act. Your food product will satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act as 'food for human consumption (whether or not requiring further processing or treatment)' once they reach a size and quality at which they are marketable and sold as food for human consumption. The Detailed Food List provides the ATO view on the GST treatment of your food product. You have determined that your food products are not of an age, size or quality to be sold as food for human consumption. Your food product therefore does not meet the definition of food under subsection 38-4(1) of the GST Act.

Relevant facts and circumstances: • You are registered for goods and services tax (GST). • You are carrying on an enterprise in growing and selling a food product. • You have determined that your food product of a certain age and size are not fit for human consumption and will not be sold by you as food for human consumption. • Your food product requires additional time in your customer's specific systems for growth.

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 Subsection 38-4(1) | A New Tax System (Goods and Services Tax) Act 1999 Paragraph 38-4(1)(a) | A New Tax System (Goods and Services Tax) Act 1999 Paragraph 38-4(1)(g)