File: 11850-2/n
XXXXX
XXXXX July 19, 1995
Dear XXXXX
This is in response to your letter of April 26, 1995, in which you requested confirmation of the Goods and Services Tax (GST) status of a product supplied by your client, XXXXX . The product in question is a beverage named XXXXX . You enclosed samples for our examination.
XXXXX is supplied in a manufacturer's package containing 30 vials of 15 ml. each of XXXXX . From your letter and a telephone discussion between XXXXX of your office and Ken Syer of this office we have determined the following facts: XXXXX is not carbonated. It contains no fruit juice, nor is it fruit flavoured.
Paragraph 1(n) of Part III of Schedule VI to the Excise Tax Act excludes the following from being considered a basic grocery item for GST purposes: "beverages (other than unflavoured milk) or pudding, including flavoured gelatine, mousse, flavoured whipped dessert product or any other products similar to pudding, except
(i) when prepared and prepackaged specially for consumption by babies,
(ii) when sold in multiples, prepackaged by the manufacturer or producer, of single servings, or
(iii) when the cans, bottles or other primary containers in which the beverages or products are sold contain a quantity exceeding a single serving;
Under this provision, the supply of a manufacturer's package containing two or more single serving beverages is zero-rated for GST purposes. For GST purposes, the supply of the manufacturer's package containing 30 servings of XXXXX is zero-rated.
This ruling is given subject to the general limitations and qualifications outlined in GST Memoranda Series 1.4. We are bound by this ruling provided that none of the above issues are presently under audit, objection or appeal, there are no relevant changes in the future to the Excise Tax Act, and provided that you have fully described all necessary facts and transactions for which you requested a ruling.
If you would like to discuss this matter further, please do not hesitate to contact Ken Syer at (613) 952-9590.
Yours truly,
J.A. Venne
Director
Special Sectors
GST Rulings and Interpretations
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