Private ruling: GST and dry preparations
Date of advice: 29 August 2016
Published: October 2016

Ruling: Q1: Is the supply of your product GST-Free? | A1: Yes. The supply of your product is not excluded from being GST-free by subsection 38-3(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) as it is an ingredient for a beverage and it is a dry preparation marketed for the purpose of flavouring milk which is covered by item 9 of Schedule 2 of the GST Act. The supply of the product is therefore GST-free under section 38-2 of the GST Act.

Relevant facts and circumstances: You are registered for GST. You sell a product made from specified ingredients. Your product is a dry preparation marketed for the purpose of flavouring milk.

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 paragraph 38-3(1)(d) | A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-4(1)(c) | A New Tax System (Goods and Services Tax) Act 1999 Schedule 2