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ATO Interpretative Decision

ATO ID 2001/601 (Withdrawn)

	Withdrawn. The ATO view for this issue is covered in the GST food guide - Section 3 - Detailed food list.
	This document has changed over time. View its history.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision. This ATOID provides you with the following level of protection: If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

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 supplies black summer truffles?

Decision

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

Facts

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).

Reasons for Decision

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.

Date of decision: 12 September 2001

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

Keywords
Goods & services tax
GST free
Food for human consumption

Date of publication: 20 November 2001

ISSN: 1445-2782