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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 and Services Tax) Act 1999 (GST Act), when it sells shredded pork?

Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells shredded pork.

The entity is a food supplier. The entity sells shredded pork.

The product is cooked, dried and shredded. The label shows that the ingredients for the product are pork, cane sugar, soy sauce, condiments, salt and bean flour. The product is mainly used in making sushi and rice balls. It may also be served on sandwiches and hamburgers or added to rice and noodles.

The product is not supplied for consumption on the premises from which it is 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. Paragraph 38-4(1)(a) of the GST Act provides that food means food for human consumption (whether or not requiring further processing or treatment). Shredded pork is food for human consumption and therefore satisfies the definition of food contained in paragraph 38-4(1)(a) of the GST Act.

The supply of the shredded pork does not fall within any of the exclusions in section 38-3 of the GST Act. Therefore, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells shredded pork.