GST and yoghurt

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 yoghurt (with or without fruit)?

Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells yoghurt (with or without fruit).

The entity is a food supplier that sells yoghurt (with and without fruit). The entity is registered for goods and services tax (GST).

The yoghurts (with and without fruit) are the variety to be consumed with a spoon. The real fruit is added prior to packaging.

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

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.

The term '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, yoghurt (with or without fruit) is 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 a combination of foods specified in clause 1 to Schedule 1 of the GST Act (Schedule 1). Yoghurt (with or without fruit) is not a food of a kind specified in Schedule 1.

In addition, the supply of the yoghurt does not fall within any of the other exclusions listed in section 38-3 of the GST Act. Therefore, the supply of yoghurt (with or without fruit) is GST-free under section 38-2 of the GST Act.