Private ruling: Goods and services tax and cooking wine
Date of advice: 12 January 2021
Published: March 2021

Ruling: Q1: Is the supply of the Product GST-free pursuant to section 38-2 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. The supply of the Product is GST-free under section 38-2 of the GST Act because: • the Product satisfies the definition of food in paragraph 38-4(1)(b) of the GST Act as an ingredient for food for human consumption and • the supply of the Product does not fall within any exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances: The Product is in a bottle of a specified volume. The Product is made in a similar process to a drinking wine. Other ingredients are added during the process to infuse the spirit. The spirit is then diluted with water and salt is added. The Product is used in the cooking process to add flavour and seasoning to various dishes. The addition of salt is made to ensure it is a seasoning for cooking and also makes the liquid unpalatable if someone tries to drink it. The addition of salt will make a person physically reject the cooking wine if consumed in volume. The Product is bottled in Australia. The label states that the Product is for cooking purposes only and not to be used as a beverage. The Product is a cooking wine full of aromatics and will bring added flavour to dishes. It has an alcohol content and contains a certain percentage of salt. The Product is targeted primarily for export, but you also want to sell it domestically by yourself or through supermarkets and other retails shops. In the supermarket, it will be in the same shelf as other cooking wine as a related yet alternative cooking ingredient.

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 paragraph 38-3(1)(c). | A New Tax System (Goods and Services Tax) Act 1999 section 38-4. | A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-4(1)(b). | A New Tax System (Goods and Services Tax) Act 1999 Schedule 1 clause 1.