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 sells soy-based cheese?
Decision
Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells soy-based cheese.
Facts
The entity is a food supplier. The entity is selling soy-based cheese. The soy-based cheese is not consumed on the premises from which it is supplied.
The entity is registered for goods and services tax (GST).
Reasons for Decision
A supply of food is GST-free pursuant to 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 paragraph 38-4(1)(a) of the GST Act to include 'food for human consumption'. Soy-based cheese is 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 specified in the table in clause 1 of Schedule 1 to the GST Act (Schedule 1).
Soy-based cheese is not food of a kind specified in Schedule 1. Furthermore, none of the other exclusions contained in section 38-3 of the GST Act apply.
Therefore, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells soy-based cheese.