Private ruling: GST and food
Date of advice: 10 May 2021
Published: July 2021

Ruling: Q1: Is the supply of the Product GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. A supply of food food is GST-free under section 38-2 of the GST Act if the product satisfies the definition 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)(a) of the GST Act as food for human consumption (whether or not requiring processing or treatment), and • the supply of the Product does not fall within any other exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances: You supply the Product. You are registered for GST. The Product is a plain bread product. You provide details about the Product, including the ingredients, manufacturing process, and images of the packaging and food items. You provided the following preparation options: Remove the Product from the package - no need to defrost. • Deep frying in oil at a particular temperature for a few seconds until golden brown. • Put into microwave until cooked. Cooking times may vary depending on the appliance. • Steam for a few minutes until fully cooked. • Frying in pan for a few minutes. • Put into oven when it reaches a particular temperature, cooking time is a few minutes. The Product is sold in the freezer section of supermarkets. You provided samples of the Product. The Product is frozen and once cooked becomes soft.

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 Schedule 1, Clause 1, table.