Are green runners and natural sausage casings GST-free as ingredients for food for human consumption?
A supply of food is GST-free under section 38-2 of the A New Tax System (Goods and Services) Tax Act 1999 (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 GST Act. Food is defined in subsection 38-4(1) of the GST Act to include ingredients for food for human consumption (paragraph 38-4(1)(b) of the GST Act). Before determining whether ‘green runners’ and ‘natural sausage casings’ are GST-free under section 38-2 of the GST Act, it is necessary to establish what we mean by the term ‘runners’, ‘green runners’ and ‘natural sausage casings’.
