23 June 1999 GST/HST Ruling HQR0001641 - GST/HST Status of Meal Replacement

Dear XXXXX

Thank you for your facsimile of February 16, 1999 and your letter of March 22, 1999 (including your sales kit and sample of product) concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the product described below.

Statement of Facts

Our understanding of the facts is as follows:

1. XXXXX has developed a new product called XXXXX which is in the form of a XXXXX[.]

2[.] XXXXX is packaged in XXXXX box of approximately XXXXX[.]

3. The product is to be sold in stores as a XXXXX[.]

4. The primary placement of the product in stores is on the XXXXX[.]

Ruling Requested

You request a ruling to confirm that supplies of XXXXX are zero-rated supplies of basic groceries pursuant to section 1 of Part III of Schedule VI of the Excise Tax Act.

Ruling Given

Based on the facts set out above, we rule that

Supplies of XXXXX meal replacement are considered to be zero-rated supplies of basic groceries pursuant to section 1 of Part III of Schedule VI of the Act.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to departmental interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 957-8253.

Yours truly,

Gisèle Prévost
Goods Unit
General Operations and Border Issues Division
GST/HST Rulings and Interpretations Directorate

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