GST and frozen meat or vegetable croquettes

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 frozen meat or vegetable croquettes?

Yes, the entity is making a GST-free supply under section 38-2 of the GST Act when it sells frozen meat or vegetable croquettes.

The entity is a food supplier that sells meat croquettes and vegetable croquettes. These food products are sold in a frozen state, as food for human consumption.

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 if it satisfies the definition of food in section 38-4 of the GST Act, and it is not excluded by 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 (whether or not requiring processing or treatment). In this case, frozen meat croquettes and vegetable croquettes are supplied as food for human consumption, and therefore satisfy the definition of food contained in paragraph 38-4(1)(a) of the GST Act.

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). Frozen meat croquettes and frozen vegetable croquettes do not fall under any item in Schedule 1.

In addition, the supply of the frozen meat croquettes and vegetable croquettes 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 when it sells frozen meat or vegetable croquettes under section 38-2 of the GST Act.