The government declared that the same rate of goods and service tax (GST) will be liable to apply on the ice cream whether it is sold inside the restaurant or outside the same.
18% must be entitled to pay as a GST on ice creams despite when it is sold inside the restaurants. In the past, there was a 5% tax when it was sold in restaurants and 18% when it was sold outside the restaurants.
“It is clarified that where ice cream parlours sell already manufactured ice- cream and do not cook/prepare ice-cream for consumption like a restaurant, it is supplied ice cream as goods and not as a service, even if the supply has certain ingredients of service. Accordingly, it is clarified that ice cream sold by a parlour or any similar outlet would attract GST at the rate of 18%, said the Finance ministry.”
“The tax expert specified that “Earlier the advance ruling authorities in some cases have concluded that the ice cream sold in ice cream parlour would be covered under restaurant services (except when sold in bulk orders) and therefore attract a GST rate of 5% (without ITC). Whereas, the Circular now provides that since ice cream parlours sell already manufactured ice cream, they do not have the character of a restaurant and accordingly, ice cream would attract a GST rate of 18% (with ITC). While the Circular provides necessary clarity on GST treatment for ice cream parlours, it might open an area of doubt for other such food suppliers who sell already manufactured food items with only a certain ingredient of service.”
The arguments towards the product categorisation are on rising which is followed by numerous advance prosecutions. There are various disagreements on the GST rate on papads, lassi and samosas.
Before that, advance rulings were held on GST which is imposed upon the foodstuffs. So parata is not similar to paratha but naan and a samosa eaten over the counter and on a chair outside the shop probably tastes distinct as it must be taxed differently.
There are various different rulings that consist of cookie covered in the chocolate is the cookie or chocolate enclosed around a wafer biscuit is a biscuit.
