1 Is the supply of the Products GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
1 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 section 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)(c) of the GST Act as beverages for human consumption • the Products are milk of a kind listed in item 1(a) of the table in clause 1 of Schedule 2 of the GST Act (Schedule 2) and beverages of a kind marketed principally as food for infants of a kind listed in item 13 of Schedule 2 and • none of the exclusions in section 38-3 of the GST Act apply. Question 2 Is the importation of the Products a non-taxable importation under paragraph 13-10(b) of the GST Act? Answer 2 Yes. GST is not payable on an importation of goods into Australia where the importation is a non-taxable importation.
Paragraph 13-10(b) of the GST Act provides that an importation is a non-taxable importation to the extent that, had the importation been a supply, the supply would have been a GST-free or input taxed supply. The importation of the Products is a non-taxable importation under paragraph 13-10(b) of the GST Act, because had the importation been a supply, it would have been GST-free, as outlined in Answer 1 above.
You distribute the Products in Australia. The Products are pasteurised milk for use in the hospitals for feeding extremely premature babies. The Products are available in a number of sizes for flexibility in feeding premature infants: The label and literature of the Products contain the following: • Ingredients - 100% milk • Pasteurized milk for tropical feeds • Product of another country • Nutritionally incomplete. Infant may require additional vitamins and iron added separately from the product. • Available frozen. • Store at below 0°C or colder until ready to use. Do not microwave. • Recommended method of thawing is refrigeration. Place unopened (frozen) bottle in refrigerator. Once the thawing process begins, administer within 48 hours. Do not refreeze. Keep refrigerated until used. After the bottle has been properly thawed, remove the cap from bottle. Gently swirl bottle to mix; DO NOT SHAKE. The product is now ready for use.
Measure out the milk using sterile syringes according to the feeding order. Label each syringe with patient identifier and refrigerate until administered. The health of the infant depends on carefully following the directions for preparation and use.
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)(d). 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)(c). A New Tax System (Goods and Services Tax) Act 1999 schedule 2.