Private ruling: unflavoured almond milk
Published: February 2012

Ruling: Q1: Is the supply of your product GST-free? Decision Yes



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).provided that the supply does not come within any of the exclusions listed in section 38-3 of the GST Act. Food is defined in paragraphs 38-4(1)(c) and 38-4(1)(d) of the GST Act to include beverages for human consumption and ingredients for beverages for human consumption. The almond milk is supplied as a beverage for human consumption. However, under paragraph 38-3(1)(d) of the GST Act, a supply of a beverage or an ingredient for a beverage is not GST-free unless it is of a kind listed in the table in clause 1 of Schedule 2 to the GST Act (Schedule 2). As the product is similar to other beverages, we consider item 4 of Schedule 2 maybe applicable to your product. Beverages which are listed under item 4 of Schedule 2 are 'beverages consisting principally of soy milk or rice milk, but not including flavoured beverages '. Flavoured soy milk or rice milk are specifically not covered by item 4 of Schedule 2. The explanation on beverages listed under item 4 of Schedule 2 is outlined in the Australian Taxation Office public ruling "Detailed Food List" (Food Lists). We enclose a copy for your reference. Beverages that are listed on the Food Lists under item 4 of Schedule 2 are: | Detailed Reasoning - Notes: rice milk (unflavoured) GST-free Schedule 2, item 4 of the GST Act applies.. soy milk (sweetened) GST-free Schedule 2, item 4 of the GST Act applies because the soy milk is only sweetened not flavoured (refer to ATO ID 2001/366). soy milk (unflavoured) GST-free Schedule 2, item 4 of the GST Act applies. As your product is prepared from a natural ingredient, it is similar to the soy milk (from soybean) and rice milk (from rice). Therefore, the unflavoured product is similar to beverages of a kind specified under item 4 of Schedule 2. In addition, soy milk (sweetened) is listed on the Food Lists as GST-free under item 4 of Schedule 2. The sugar added to the soy milk is a sweetener and is not considered to be a flavouring. Therefore your product (sweetened) is considered to be an unflavoured product. Your unflavoured product is similar to beverages listed under item 4 of Schedule 2, and is therefore not excluded from being GST-free under section 38-3 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. | Relevant facts: You are registered for goods and services tax (GST). | You request advice on the GST status of the supply of your product. | The product is marketed as a beverage for human consumption. | The product consists of a natural ingredient, water and sugar added as a sweetener