Private ruling: GST and various imported foods
Published: June 2015

Ruling: Q1: Are the importations of the food products non-taxable importations under section 13-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes.

Relevant facts and circumstances: The goods in question are supplied frozen and are required to be cooked by consumers.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 13-10 | 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 section 38-4

Reasons for decision: Summary: The importations of the food products are non-taxable importations under section 13-10 of the GST Act. | Detailed Reasoning - Detailed reasoning: Section 13-10 of the GST Act notes that: An importation is a non-taxable importation if: (a) it is a non-taxable importation under Part 3-2; or (b) it would have been a supply that was *GST-free or *input taxed if it had been a supply. Paragraph (b) above refers to the GST-free provisions of the GST Act and directs that the importation in question should be assessed as if it had been a supply. Division 38 of the GST Act sets out supplies that are GST-free. 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. Food is defined in section 38-4 of the GST Act to include 'food for human consumption (whether or not requiring processing or treatment)' (paragraph 38-4(1)(a) of the GST Act). The goods in question are supplied as foods for human consumption. Therefore, the goods come within the meaning of food contained in section 38-4 of the GST Act. However, under paragraph 38-3(1)(c) of the GST Act, a supply is not GST-free if it is a supply of food of a kind specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1). The exclusions listed in Schedule 1 come within the categories of: • Prepared food; • Confectionery; • Savoury snacks; • Bakery products; • Ice-cream food; and • Biscuit goods You indicated in your submission that that you held a concern over whether the goods could be 'prepared meals' which fall under the category prepared food in Schedule 1. The ATO, through the publication 'The GST food guide' notes that a 'prepared meal' is a food that meets the following three conditions: • it directly competes with takeaways and restaurants • it needs refrigeration or freezing for storage • it is marketed as a prepared meal but is not soup. Of particular interest are the examples of prepared meals given in the GST food guide: • curry and rice dishes, mornays and similar dishes sold cold that only need reheating to be ready for eating; • fresh or frozen lasagne; • sushi; • cooked pasta dishes sold complete with sauce; • frozen TV dinners; • fresh or frozen complete meals (for example, a single serve of a roast dinner, including vegetables or a low fat dietary meal). You will note that the examples include 'complete' dishes rather than components of dishes. Given this interpretation, the goods in question cannot be excluded from being GST-free as prepared meals, these goods do not constitute complete meals as contemplated in the ATO's view. Further the goods are not excluded by any other of the items listed in Schedule 1 and therefore can be supplied GST-free. As such the importation of these goods is a non-taxable importation.