GST and black summer truffles

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 black summer truffles?

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

The entity is a food supplier. The entity is selling black summer truffles.

The black summer truffle is a subterranean edible fungus. The black summer truffles are not supplied for consumption on the premises from which they are supplied. The entity does not supply the truffle as hot food for consumption away from those premises.

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 it does not come within any of the exclusions listed in section 38-3 of the GST Act.

Section 38-4 of the GST Act defines food for the purposes of section 38-2 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). Black summer truffles are subterranean edible fungi. Therefore, black summer truffles are considered 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). Black summer truffles do not fall under any item in Schedule 1.

In addition, the supply of black summer truffles 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 black summer truffles.