30 October 2000 GST/HST Interpretation 32091 - Application of the GST/HST to the Supply of Fruit and Grain Bars

Dear XXXXX:

Thank you for your letter of July 19, 2000, together with examples of retail packaging for the three varieties of XXXXX, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the supply of this product.

Please note that as of November 1, 1999, Revenue Canada became the Canada Customs and Revenue Agency ("CCRA").

Facts

Our understanding of the facts is as follows:

XXXXX are portable bars made with whole grain oats and real fruit;

XXXXX come in three varieties: XXXXX;

•   Each XXXXX bar is individually wrapped and weighs 49 grams; and

•   The XXXXX come in a retail format of 6 bars per carton, and a jumbo format of 18 bars per carton.

Interpretation Requested

Whether the supply of XXXXX is zero-rated for GST/HST purposes.

Interpretation Given

Based on the information provided, the supply of XXXXX in the formats provided and described above is zero-rated for GST/HST purposes pursuant to section 1 of Part III of Schedule VI to the Excise Tax Act ("ETA").

The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the CCRA with respect to a particular situation.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-2560.

Yours truly,

Richard Aronoff
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate