- 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
