GST and raw/unprocessed olives

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 raw/unprocessed olives?

Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells raw/unprocessed olives.

The entity is a food supplier.

The entity sells raw/unprocessed olives.

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 the supply does not fall 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 includes food for human consumption (whether or not requiring processing or treatment). Raw/unprocessed olives are considered to be food for human consumption.

However, under paragraph 38-3(1)(c) of the GST Act, a supply of food is not GST-free if it is food of a kind that is specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1). Raw/unprocessed olives are not specified in Schedule 1, and therefore, the supply of raw/unprocessed olives is not excluded from being GST-free under paragraph 38-3(1)(c) of the GST Act. In addition, the supply of raw/unprocessed olives does not fall within any of the other exclusions listed in section 38-3 of the GST Act.

Accordingly, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells raw/unprocessed olives.