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Is the entity, a food supplier, making a GST-free supply under section 38-2 of the A New Tax System (Goods & Services Tax) Act 1999 (GST Act), when it supplies abalone for human consumption?

Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies abalone for human consumption.

The entity is a food supplier. The entity sells abalone for human consumption to a processor and wholesaler.

An abalone is a mollusc.

The abalone is not supplied for consumption on the premises from which they are supplied.

The entity is registered for goods and services tax (GST).

A supply of food is GST-free under section 38-2 of the GST Act, provided that it does not come within any of the exclusions listed in section 38-3 of the GST Act.

Food is defined in subsection 38-4(1) of the GST Act to include food for human consumption (whether or not requiring further processing or treatment) as stated in paragraph 38-4(1)(a) of the GST Act. However, the definition of food does not include live animals (other than crustaceans or molluscs) according to paragraph 38-4(1)(g) of the GST Act.

Abalones are molluscs and regardless of whether they are alive or dead, they are not excluded from being food by paragraph 38-4(1)(g). Therefore, abalone falls within the definition of food. Furthermore, none of the exclusions listed in section 38-3 of the GST Act apply.

Accordingly, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies abalone for human consumption.