EV 1051961964704currentnon-binding advice

GST classification of food products

Pork crackling (savoury snack)

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.

1

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

2

No. The supply of the Product is not GST-free under section 38-2 of the GST Act.

3

You are an Australian entity which is registered for GST You manufacture and supply pork crackling ('the Product'). The Product is slow cooked cracklings. The Ingredients in the Product are Pork Skin, Pork Fat & Sea salt. You provided samples, photos of the Products and the marketing. The Products are low, carb, high protein and savoury snacks. The Products ae marketed as crunchy pork crackling.

4

A New Tax System (Goods and Services Tax) Act 1999 section 9-5 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 Schedule 1 clause 1 table Item 15 Summary The supply of the Product is not GST-free under section 38-2 of the GST Act. The supply of the Product is a taxable supply under section 9-5 of the GST Act. Detailed reasoning 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 sectio