Private ruling: GST and food
Date of advice: 24 July 2020
Published: August 2020

Ruling: Q1: Is the supply of the nuts GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. 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 supply of the nuts is GST-free under section 38-2 of the GST Act because:

Relevant facts and circumstances: You carry on a primary production business growing nuts. You are registered for GST. The nuts in shell are sold to a processor. You do not process the nuts in any way prior to sale and they are packaged in large bins for transport to the processor.

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 Schedule 1, Clause 1, table.


the nuts satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption and | the supply of the nuts does not fall within any exclusions in section 38-3 of the GST Act.