ATO’s view of food product GST classification upheld by AAT

• The Administrative Appeals Tribunal (AAT) has ruled that Chobani’s “Flip” yoghurt products should be subject to GST.
• The decision was based on the fact that the yoghurt is a combination of foods, including biscuit pieces and chocolate chips, which are specified in the GST Act as being subject to GST.
• Chobani had previously treated its Flip yoghurts as GST-free, but a change in the Commissioner’s view led to litigation.
• The AAT determined that the exclusion to GST-free treatment applies and the supply of Flip yoghurt should be taxable.
• The ruling did not address the protection that Chobani may have sought from the Commissioner’s public ruling GSTR 2001/8, which allows taxpayers to treat certain supplies involving two or more parts as a single “composite supply.”

Source KPMG

---

---