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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 supplies miso paste?

Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies miso paste.

The entity is a food supplier. The entity supplies miso paste.

Miso paste is a traditional Japanese food. It is a naturally fermented savoury paste which is made from soybeans or other vegetable proteins like chickpeas, salt, and grain (i.e. rice, barley, wheat or corn). Miso paste is a vegetable source of vitamin B12 and is ideal for vegetarians. It is supplied as an ingredient that can be added to various dishes. It is used as a food condiment or seasoning and is added to soups, dressings, dips, spreads and sauces.

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 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 ingredients for food for human consumption (paragraph 38-4(1)(b) of the GST Act). Miso paste is supplied as an ingredient that can be added to various dishes and is used as a seasoning in soups, dressings, dips, spreads and sauces. Accordingly, the miso paste is an ingredient for food for human consumption and, therefore, satisfies the definition of food in paragraph 38-4(1)(b) of the GST Act.

However, paragraph 38-3(1)(c) of the GST Act provides that a supply of food is not GST-free if it is food of a kind specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1). Miso paste is not food of a kind listed in Schedule 1.

In addition, miso paste does not fall within any of the other 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 supplies miso paste.