October 17, 1994
Dear XXXXX
This is further to my letter to you of March 23, 1994, in which we discussed the application of the Goods and Services Tax (GST) to the supply of zero-rated grocery products which have been packaged for sale to consumers in plastic XXXXX containers. The food products in question were XXXXX
In my letter of March 23, 1994, I stated that the XXXXX supplied in a plastic XXXXX container were a multiple supply for purposes of the GST. This issue has been revisited and our policy has been revised.
It is the Department's position that in both the XXXXX cases, the supply is not considered to be a supply of the XXXXX container or the otherwise zero-rated grocery item. Rather, it is a new product that is not provided for under Part III of Schedule VI to the Excise Tax Act and is therefore taxable at 7%. As stated in my March 23, 1994 letter XXXXX is not a usual covering or container for the purposes of section 137 of the Act.
As per your telephone conversation on September 23, 1994 with Ken Syer of this office, this amended ruling will not cause adverse tax consequences for your firm because you have already applied the GST on the total sale price of the good. Nevertheless, I apologize for any inconvenience that this policy change may cause.
This ruling is given subject to the general limitations and qualifications outlined in GST Memorandum 100-3. 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 the necessary facts and transactions for which you have requested a ruling.
If you would like to discuss this matter further, please do not hesitate to contact Ken Syer, A/Senior Policy Officer at (613) 952-9590.
Yours truly,
J. A. Venne
Director
Tax Policy - Special Sectors
GST Policy and Legislation
c.c.: K. Syer
S. Bernier, P&L
M. Bloom, P&L
XXXXX
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