Understanding GST on Food and Beverage Products

GST on Food and Beverage Products applies to food products that consist principally of seeds or nuts that have been processed or treated by salting, spicing, smoking, or roasting, or a similar process. These are a taxable supply and specifically excluded from being GST-free.

If your business supplies food and breakfast products that consist mostly of seeds or nuts, you may need to include goods and services tax (GST) in the selling price.

While breakfast cereals are GST-free, products that mainly consist of roasted nuts or seeds are not. This means businesses must charge GST on breakfast products containing more than 50% roasted nuts, even if labeled as breakfast cereal.

Regularly Checking GST Compliance

Remember to regularly check that you’re charging GST correctly on these products. If you haven’t charged GST previously, you should make a  voluntary disclosure or speak with your accountant.

You can also use the GS1 Australia database, the National Product Catalogue (NPC, previously called GS1net), to determine if GST applies to food and beverage products. The ATO won’t apply penalties or unfavourable adjustments where you follow the ATO approved classification guidance on NPC. Find out more at  PS LA 2012/2.

Resources for Further Information

For more information to help you determine the GST status of food products, refer to the ATO webpage GST and food.

Understanding and complying with GST on food and beverage items is crucial for businesses to avoid any legal or financial penalties. Ensure you stay updated with the latest guidelines to remain compliant. If you have any queries, please contact our team at Cotchy.