Issue
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 cheeses packaged in various forms, other than platters or similar arrangements?
Decision
Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it supplies cheeses packaged in various forms, other than platters or similar arrangements.
Facts
The entity is a food supplier. The entity supplies cheeses packaged in various forms.
The cheeses are supplied in blocks, and are packed in various forms including shrink wrap and containers.
The cheeses are not supplied in the form of a platter or similar arrangement.
The cheeses are not sold for consumption on the premises from which they are supplied.
The entity is registered for goods and services tax (GST).
Reasons For Decision
Generally, a supply of food is GST-free under section 38-2 of the GST Act provided that the supply does not come within any of the exclusions listed in 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). In this case, cheeses packed in various forms are considered to be food for human consumption.
In accordance with section 38-3 of the GST Act, some foods are not GST-free. This includes food or combinations of food specified in clause 1 of Schedule 1 of the GST Act (Schedule 1). Cheeses supplied in the form of a platter or similar arrangement are specifically listed in item 5 of Schedule 1. However, cheeses supplied in the form of blocks and packed in shrink wrap or containers are not specifically included in Schedule 1. In this case, the cheeses are not supplied in the form of a platter or similar arrangement, and therefore, are not covered by item 5 of Schedule 1.
In addition, the supply of cheeses in the form of blocks and packed in shrink wrap or containers does not fall within any of the other exclusions listed 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. [Note: Where cheeses are individually cubed or sliced into bite size pieces and presented as a platter or a similar arrangement, the supply is not GST-free in accordance with item 5 of Schedule 1.]