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EV 1052474120802 — Breakfast cereal (mixed with milk/water; for a specific age group) · Tullian

EV 1052474120802currentnon-binding advice

GST and supply of breakfast cereals

Breakfast cereal (mixed with milk/water; for a specific age group)

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

Is the supply of the Products GST-free pursuant to section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Yes. A supply of food is GST-free under section 38-2 of the GST Act if the product satisfies the definition of food in section 38-4 of the GST Act and the supply is not excluded from being GST-free by section 38-3 of the GST Act. The supply of the Products is GST-free under section 38-2 of the GST Act because: • the Products satisfy the definition of food in paragraph 38-4(1)(a) of the GST Act as food for human consumption (whether or not requiring processing or treatment); and • the supply of the Products does not fall within any of the exclusions in section 38-3 of the GST Act.

• You are a retailer of the Products. • The Products are available in a number of flavours. • The ingredients include grain, vegetables, fruits and prebiotic. • The Products are marketed as a breakfast cereal for a specific age group. The Products are to be mixed with water or choice of milk. • The Products are sold in a resealable packet which contain a specified weight that equates to a number of suggested servings. • The Products will be available in a particular section of stores alongside similar products. • You provided images of the packaging. • You provided samples of the Products. The pack contains food items that have a light and airy texture. They are crispy and crunchy with a sweet taste and the flavour of fruit.

A New Tax System (Goods and Services Tax) Act 1999 section 38-2 A New Tax System (Goods and Services Tax) Act 1999 section 38-3 A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-3(1)(c) A New Tax System (Goods and Services Tax) Act 1999 section 38-4 A New Tax System (Goods and Services Tax) Act 1999 paragraph 38-4(1)(a)