Private ruling: GST and food
Published: December 2011

Ruling: Q1: Will your supply of certain food products (Products) be subject to goods and services tax (GST)? | A1: No. Your supply of the Products will be GST-free as food. Your importation of the Products will be non-taxable as a consequence.

Relevant facts and circumstances: You are registered for GST. You intend to import and supply the Products. Each Product requires that it is added to boiling water prior to being consumed. The Products do not require refrigeration or freezing for their storage. Some of the Products are also available in a smaller serve size. The Products are made from ingredients fit for human consumption and have nutritional value. The ingredients have been freeze-dried and dehydrated. You have supplied a website where the Products can be viewed.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 Section 38-2 | Section 38-3 | Section 38-4 | Schedule 1

Reasons for decision: Summary: A supply of food is GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (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 food for human consumption, whether or not requiring processing or treatment. The Products will be marketed and sold as food for human consumption, have ingredients fit for human consumption and have nutritional value. Consequently, they can be treated as food for human consumption. The supply of the Products do not fall within any of the exclusions in section 38-3 of the GST Act except for possibly paragraph 38-3(1)(c). Paragraph 38-3(1)(c) of the GST Act provides that a supply of food is not GST-free if it is food of a kind that is specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1). Schedule 1 includes the following food items that may be of relevance when considering the GST treatment of your supply of the Products: food marketed as a prepared meal, but not including soup (Item 4 of Schedule 1). Some of the Products have characteristics that are found in prepared meals. However, clause 3 of Schedule 1 provides that prepared meals covered by Item 4 of Schedule 1 must be food that requires refrigeration or freezing for their storage. In your case, the Products do not require refrigeration or freezing for their storage and therefore are not covered by Item 4 of Schedule 1. Consequently, your supply of the Products will be a GST-free supply of food under section 38-2 of the GST Act. Non taxable importation Please note that section 13-10 of the GST Act provides that an importation is a non-taxable importation if: § it is a non-taxable importation under Part 3-2 of the GST Act, or § it would have been a supply that was GST-free or input taxed if it had been a supply (for example, it would be a GST-free supply had the supply been made in Australia). In your case, your supply of the Products in Australia will be GST-free and consequently, your importation will be non-taxable under section 13-10 of the GST Act.

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.