I purchased som fruit and vegetables at a Foodworks supermarket. Upon glancing at the register receipt I noticed that one of the items had a GST charge on it, a punnet of mushrooms, ie styrofoam tray wrapped in plastic wrap. Protective packaging.
I queried this with the store pricing manager and was told that this was due to it being packaged.
However researching the GST rules on food products I saw:
"Packaging is generally treated in the same manner as the contents, if food is GST-free then the packaging will also be GST-free.[77] However, there are limits to the GST-free status of packaging. Where the packaging that is more than is usual and necessary, it will be taxable.[78]"
Should there be GST on this item?
Thank you.