Hi there @avish.singh,
I wouldn't focus on whether the coffee mix was GST-free when you bought it. The more relevant question is what you are supplying to the vendor.
If the vendor has engaged you to:
- provide staff,
- prepare samples,
- attend a store or event, and
- conduct a product sampling campaign,
then it may be that you're making a taxable supply of promotional services to the vendor. If so, GST would apply to the amount you charge for those services, even if part of your cost relates to a GST-free product.
If your invoice includes separate tax and GST-free components, the invoice will need to identify each component and the GST treatment. This info must be clear. Our invoice rules recognise that it can include both taxable and non-taxable items.
You should be cautious about treating the product cost as GST-free because the coffee mix was purchased GST-free. The GST treatment depends on the nature of the supply you are making to the vendor, not just the GST treatment of your purchase.
It may be helpful to consider whether you're supplying a product sampling or promotional service to the vendor, rather than resupplying the coffee mix. If the supply is a service, GST would generally apply to the amount you charge for that service.
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