Private ruling: GST on food products
Date of advice: 27 August 2025
Published: 27 October 2025
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX

Ruling: Q1: Does GST apply to the Noodles (the Product) sold in supermarkets and grocery stores across Australia? | A1: The Product is food of a kind that is marketed as a prepared meal and therefore covered by item 4 in the table in clause 1 of Schedule 1 to the GST Act (item 4). As such, the sale of the Product is excluded from being GST-free by the operation of paragraph 38-3(1)(c) of the GST Act and is a taxable supply under section 9-5 of the GST Act.

Relevant facts and circumstances: You conduct a business as a grocery wholesaler. You are registered for GST from DD MMM YYYY. You plan to import and sell the Product to supermarkets and grocery stores across Australia. The Product package includes one portion of raw noodles, one pouch containing meat and one pack of garnish - all intended for human consumption. The Product does not require freezing for storage, however refrigeration is required. Serving suggestion provided by the Product's manufacturer: Step 1: Add an appropriate amount of water to the pot. Once it reaches a boil, add the noodles and cook for 5-7 minutes, depending on your preferred level of doneness. Step 2: After cooking the noodles, place the unopened soup pouch into the boiling water and heat for 5 minutes. Alternatively, heat the pouch in a separate pot while the noodles cook. (Do not open the pouch before boiling. Do not microwave the unopened pouch.). If preferred, you may open the pouch, pour the contents into a microwave-safe container, and heat until hot throughout. Step 3: Add the heated soup and garnish to the cooked noodles, mix thoroughly, and enjoy your hearty bowl of meat noodles. The Product is not advertised in social media or on a website. You do not have marketing brochures prepared. While the Product packaging is not yet completed, you have provided images of the draft packaging.

Relevant legislative provisions: A New Tax System (Goods and Services Tax Act) 1999 section 9-5 | 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: Under section 9-5 of the GST Act, a supply is not a taxable supply to the extent that it is 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. It is accepted that the Product falls within the definition of food for human consumption (paragraph 38-4(1)(a) of the GST Act). Pursuant to paragraph 38-3(1)(c) of the GST Act, food is not GST-free under section 38-2 of the GST Act if it is a supply of food of a kind specified in the third column of the table in clause 1 of Schedule 1 to the GST Act (Schedule 1), or food that is a combination of one or more foods at least one of which is food of such a kind. Relevant to paragraph 38-3(1)(c) and the Product, is the category of 'Prepared food' in Schedule 1 and more specifically, item 4 which is: *food marketed as a prepared meal, but not including soup Applicable to prepared food and meals, are clauses 2 and 3 of Schedule 1 which state: 2 Prepared food, bakery products and biscuit goods For the purpose of determining whether particular food is covered by any of the items in the table relating to the category of prepared food, bakery products or biscuit goods, it does not matter whether it is supplied hot or cold, or requires cooking, heating, thawing, or chilling prior to consumption. 3 Prepared meals Item 4 in the table only applies to food that requires refrigeration or freezing for its storage. The Product requires refrigeration for storage. Clause 2 and clause 3 of Schedule 1 are satisfied, as such, they do not preclude the Product from being covered by item 4. As such, it is necessary to consider whether the Product is food of a kind that is marketed as a prepared meal in section 38-3(1)(c) of the GST Act. Is the product food of a kind that is marketed as a prepared meal? The public ruling GSTD 2025/1 - Goods and services tax: supplies of food of a kind marketed as a prepared meal (GSTD 2025/1) provides the Commissioner's view on what products are food of a kind marketed as a prepared meal primarily by reference to the Federal Court's decision in Simplot Australia Pty Limited v Commissioner of Taxation [2023] FCA 1115 (Simplot) . According to GSTD 2025/1, in determining whether a product is food of a kind marketed as a prepared meal, the statutory question is a 'single composite question', that being - is the product food of a kind that is marketed as a prepared meal? Paragraph 22 of GSTD 2025/1, provides that we need to consider what is meant by food being food of a kind marketed as a prepared meal, followed by an assessment of whether the product falls within that class or genus. This means it is not whether the product itself is marketed as a prepared meal, but whether the product is a member of a class or genus of foods that are marketed as prepared meals. Paragraph 46 of GSTD 2025/1 further provides - A product will be food of a kind marketed as a prepared meal if it is the kind of food that, as a matter of common sense and common experience, is marketed as a prepared meal. This is determined objectively by considering the attribute of the product, including quantity, composition and presentation. Therefore, the general principles as outlined above will be applied to determine whether the Product is food of a kind marketed as a prepared meal. Quantity The term 'quantity' is discussed in paragraphs 48 - 53 of GSTD 2025/1. As a matter of common sense and common experience, a product is not food of a kind marketed as a prepared meal unless it is of a sufficient quantity for a meal. Relevant considerations are: • The product need not be a substantial or big meal. • What will be a 'quantity of substance' will vary based on the product in question. • The product may be marketed as a snack, and still be food of a kind that is marketed as a prepared meal. Paragraph 53 states - Based on our review of products in the market, we consider that products of less than 150 grams in total weight will not be a sufficient quantity for a meal and are not food of a kind marketed as a prepared meal.... In the present case, while the Product packaging does not specify the weight of the uncooked noodles, it can be determined accurately, by excluding the weight of the other two packets in the meal, as being 420g. To the consumer, this would generally be considered a substantial quantity. The sauce, or casserole, is also a generous quantity, and includes a similarly generous portion of meat. We consider that the Product is sufficient for a meal, as it contains a quantity of noodles and meat that, from the perspective of common experience and common sense, is a substantial portion size. Composition The term 'composition' is discussed in paragraphs 54 - 57 of GSTD 2025/1, instructing that it is necessary to consider the nature of the ingredients or elements and not simply the number of ingredients or elements. In practice, applying common sense and common experience involves considering whether the product has a similar composition to products sold as a prepared meal by entities in the food industry. A product is more likely to be food of a kind marketed as a prepared meal where it is made from multiple ingredients or elements. A product that includes some combination of protein in a casserole type sauce and a noodle product is more likely to be a kind marketed as a prepared meal. The Product has this attribute. While there is no current marketing plan for the Product, we consider that the product has a similar composition to products sold as a prepared meal, subject to some preparation, by entities in the food industry. It is reasonable to consider the Product as an affordable alternative to a prepared meal offered by a takeaway store, and indeed similar to other products found in the supermarket that present as prepared meals. We consider that it is more likely than not, that as a matter of common sense and common experience, the product is properly characterised as food of a kind marketed as a prepared meal. Presentation The term 'presentation' is discussed in paragraphs 58 - 66 of GSTD 2025/1. We are instructed that a product's presentation will indicate it is food of a kind marketed as a prepared meal if it is presented as being complete. In this context, this involves both the degree of preparation and whether the product is supplied with all necessary inclusions to be a complete 'meal'. A product should be 'complete' in the sense of being prepared and should require only limited further preparation, assemble or activity by the consumer. Relevant principles are: • If cooking or heating is required for the product to be ready for consumption, this should only require limited activity by the consumer, such as cooking or heating in a microwave, oven, frying pan or saucepan. Simply heating a product and stirring regularly during the process will not mean, by itself, that the product is not sufficiently prepared. This will apply even where these activities are required to complete the cooking process for a partly cooked product. • Where a product requires certain actions by the consumer, particularly where more than one of those is require, this may point to a conclusion that the product is not sufficiently prepared - o Chopping, peeling, or otherwise preparing the ingredients o Cooking different ingredients or elements separately or using different methods, or cooking a product which contains raw ingredients where this requires active involvement of the consumer like stirring, monitoring, adjusting temperate, and the staged addition of different ingredients. • The fact that a consumer needs to combine the ingredients or elements before consumption of itself does not mean the product is not sufficiently prepared to be 'complete'. A product should be presented as being 'complete' in the sense of being a complete meal. Where a product includes all required seasonings, sauces or flavouring, this will an indicator that the product is presented as complete. Marketing of a product may strongly indicate that it is food of a kind marketed as a prepared meal. GSTD 2025/1 provides relevant examples of 'sufficiently prepared' and 'not sufficiently prepared'. Example 5 - presentation - sufficiently prepared 90. Manufacturer Ltd makes and sells a frozen pasta product containing chicken, vegetables, pasta and sauce. The product is sold in a 400-gram bag and has been partly cooked. The instructions on the bag say that the product should be: • microwaved in a covered microwave-safe container on high for 6 minutes, stirred and microwaved for a further 4 minutes, or • cooked in a covered pan on the stove-top for 15 minutes, stirring as necessary. 91. The pasta product has the attributes of a prepared meal, including sufficient quantity, composition and presentation. As a matter of common sense and common experience, pasta in sauce with chicken and vegetables is a kind of food that is marketed as a prepared meal. 92. While the pasta product is not fully cooked at the point of sale, this does not prevent it from being sufficiently prepared. Completion of the cooking process can be achieved by alternate methods, both of which constitute limited further preparation and activity by the consumer as the product is partly cooked at the point of sale. 93. The pasta product is food of a kind marketed as a prepared meal. Example 6 - presentation - not sufficiently prepared 94. Wholesaler Ltd sells meal preparation kits that contain all the ingredients necessary to make a meal. Each kit is accompanied by step-by-step cooking directions. The Chicken Stir-Fry kit comes with raw chicken, fresh chopped vegetables and a packet of sauce. 95. The product's presentation is not consistent with that of a prepared meal as it is not presented as complete. Even though the product is prepared to some degree and contains all the necessary ingredients for a meal, the ingredients require more than limited preparation, assembly and activity by the consumer before consumption. The chicken and vegetables are raw and cooking the product requires active involvement of the consumer, including stirring, monitoring, adjusting temperature and the staged addition of different ingredients to ensure the meal is fully cooked. 96. As a matter of common sense and common experience, a product containing raw chicken, fresh chopped vegetables, and a packet of sauce is not a kind of food that is marketed as a prepared meal. 97. The Chicken Stir-Fry kit is not food of a kind marketed as a prepared meal. Both examples reflect on whether, as a matter of common sense and common experience, a product holds the attributes of whether it is a kind of food that is marketed as a prepared meal. A product's presentation will indicate it is food of a kind marketed as a prepared meal if it is presented as complete; this involves the degree of preparation and whether the product is supplied with all necessary inclusions to be a complete 'meal'. The Product is supplied ready for consumption as all ingredients are supplied in separate internal packets inside the outer packaging. To get the Product ready for consumption, there is no chopping or peeling involved. The meat portion is not raw - it has been subject to cooking through the manufacturing process and requires heating only. The raw noodles simply require cooking in water and the garnish does not require further preparation. The process does not require considerable effort on the part of the consumer. We consider that the Product is presented as 'complete', and the amount of effort required is limited or modest. Conclusion The central attributes of the Product - it's quantity, composition and presentation - indicate food of a kind that is marketed as a prepared meal. Accordingly, the Product is food of a kind that is marketed as a prepared meal and therefore covered by item 4 in the table in clause 1 of Schedule 1 to the GST Act. As such, the sale of the Product is excluded from being GST-free by the operation of paragraph 38-3(1)(c) of the GST Act and is a taxable supply under section 9-5 of the GST Act. The Detailed Food List public ruling For completeness, paragraph 5 of GSTD 2025/1 advises that the Determination should be read with GST Industry Issue GSTII FL1 Detailed Food List (Detailed Food List), which is a public ruling that provides our view on the GST classification of many food and beverage product lines, including under table item 4. Relevantly, the Detailed Food List includes - Detailed Food List ID Item GST status Note 534 noodles with sauce product that: . Needs refrigeration or freezing for its storage; and . requires no or limited further preparation, assembling or cooking activity before consumption taxable Schedule 1, Item 4 of the GST Act applies as the product is food of a kind marketed as a prepared meal (refer GSTD 2025/1) The conclusion that the Product in this case is food of a kind marketed as a prepared meal is consistent with the Detailed Food List entry 534.