GST and supply of frozen fruits

Frozen cut fruit (100% fruit)

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 by the entity GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Yes , the supply of the Product is GST-free under section 38-2 of the GST Act. The supply of the Product is GST-free under section 38-2 of the GST Act because: • the Product is food for human consumption • the Product is not food of a kind listed in item 29 and 31 of Schedule 1 to the GST Act, and • the supply the Product does not fall within any of the other exclusions in section 38-3 of the GST Act. Question 2 Is the importation of the frozen fruits by a non-taxable importation under paragraph 13-10(b) of the GST Act? Answer Yes. The importation of the frozen fruits is a non-taxable importation under paragraph 13-10(b) of the GST Act because, had it been a supply, it would have been a GST-free supply

The entity is registered for GST. The entity imports frozen cut up fruits into Australia in bulk. The fruits are re-packed and supplied to a retailer in resealable bags ( the Product ). The Product is 100% cut up fruits. The Product must be kept frozen and stored at below minus 18°C. Once thawed, it must be refrigerated below 5°C and used within 2 to 3 hours.

A New Tax System (Goods and Services Tax) Act 1999 , section 13-10 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, section 38-4