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

Ruling: Q1: Is the supply of the Product 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 Product is GST-free under section 38-2 of the GST Act because: · the Product satisfies the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption and · the supply of the Product does not fall within any other exclusions in section 38-3 of the GST Act.

Relevant facts and circumstances: You make and sell a plant-based food product and you are registered for GST. The Product is a plant-based food product that is sold as an individual unit of a particular weight. It is intended to be consumed as an ingredient or component of a meal or snack and stored in accordance with the directions on the nutritional label. The ingredients are plant-based including wheat, beans, tomato paste, oil, herbs and spices. The Product has to be kept refrigerated and stored in sealed in airtight container/bag after opening for best results. You advertise the Product as a wholesale item on your social media accounts. The Product is sold to retailers, distributors and eateries around Australia.

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.