Private ruling: GST and food
Published: April 2012

Ruling: Q1: Is your supply of your food products (Products) subject to goods and services tax (GST)? | A1: No.

Relevant facts and circumstances: You are registered for GST. You import then sell the Products. The Products are marketed by you as condiments to be used with food.

Relevant legislative provisions: All references are to the A New Tax System (Goods and Services Tax) Act 1999 : Section 38-2 | Section 38-3 | Section 38-4

Reasons for decision: Summary: 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 definition of food in section 38-4 of the GST Act includes goods to be mixed with or added to food for human consumption (including condiments). Your Products are sold as condiments to be used with food and consequently can be treated as food for GST purposes. Your Products do not fall within any of the exclusions in section 38-3 of the GST Act. Further to this the GST food guide (available from the ATO website www.ato.gov.au ) provides that the supply of condiments is GST-free. Consequently, your supply of your Products would not be subject to GST.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.