Private ruling: GST-free and supply of food
Date of advice: 14 October 2016
Published: January 2017

Ruling: Q1: Are you making a GST-free supply under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you sell Product A? | A1: Yes. The supply of Product A is GST-free under section 38-2 of the GST Act because: ● Product A is food for human consumption and satisfies the definition of food (paragraph 38-4(1)(a) of the GST Act) and ● the supply of the Product A does not fall within any exclusions in section 38-3 of the GST Act. | Q2: Are you making a GST-free supply under section 38-2 of the GST Act when you sell Product B? | A2: Yes The supply of the Product B is GST-free under section 38-2 of the GST Act because: ● Product B is food for human consumption and satisfies the definition of food (paragraph 38-4(1)(a) of the GST Act) and ● the supply of Product B does not fall within any exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances: You are a wholesale food distributor and are registered for goods and services tax (GST). You are about to launch new products into the Australian foodservice market. Product A contains fillings encased in X Product B contains fillings encased in something other than X Products A and B as are not marketed as a prepared meal. They are designed to be used as part of a meal. Products A and B are not sold for consumption on the premises from which they are supplied. You do not supply Products A and B as hot food for consumption away from those premises. You sell Products A and B to food service distributors/wholesalers. Products A and B are imported as products. You provided the labels for Products A and B.

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 paragraph 38-4(1)(a) | A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, Clause 1, item 22 | A New Tax System (Goods and Services Tax) Act 1999 S chedule 1, Clause 1, item 23 | A New Tax System (Goods and Services Tax) Act 1999 Schedule 1, Clause 1, item 25