GST Applicable on Ice-creams, Allied Products, and Milk Shakes: AAR

The Authority of Advance Ruling of the Telangana State has ruled that GST (Goods and Services Tax) will be applicable on Ice Cream, its allied products and milkshakes. The judgement was taken in the case of an application filed by M/s Sri Venkateswara Agencies. The applicant is a partnership firm, who are registered distributors of “Scoops” ice cream brand and products. They supply Scoops and its products to the sub-distributors, retail outlets, parties, hotels and other premises in Hyderabad. They sell ice cream in their parlours, through ice cream caterers, vendors, pushcarts, etc.

Firstly, the applicant had sought the ruling of the AAR as to what will be the rate of GST applicable Grab the information of revised GST slab rates on consumer products in India, Although GST council finalized the slab rates like 5%, 12%, 18% and 28% on ice cream, its allied products, milkshakes (with or without providing the special ingredients like fruits, dry fruits, sauce, as demanded by the customer).

The bench of the AAR was held by Additional Commissioner of State Tax J. Laxminarayana and Joint Commissioner of Central Tax B. Raghukiran who said that the supply falls under Sl.No. 7(i) of Not. No. 11/2017-CT (R), dated June 28, 2017 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) for the period of 15th November 2017 to 30th September 2019. According to the notification, no input tax credit will be credited for the GST charged on such goods and services. They also said that for the period after 1st October 2019 the said supply falls under Sl. No. 7(ii) of Not. No. 11/2017- CT (R), dated 28.06.20 17 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) and no input tax credit will be credited for the GST charged on such goods and services listed under this notification also.

Secondly, the applicant had sought the ruling of the AAR (Authority for Advance Rulings) Get to know about AAR (Authority for Advance Rulings) under GST India along with its mechanism. Also, we have described its objectives, powers, orders. Read More as to what will be the rate of GST applicable on ice cream and allied products sold in parlours like cones, bars, sticks, family packs, party packers etc. sold by ice cream parlours on which the bench informed that the supply falls under Sl.No. 7(i) of Not. No. 11/2017-CT (R), dated June 28, 2017 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) for the period of 15th November 2017 to 30th September 2019. According to the notification, no input tax credit will be credited for the GST charged on such goods and services. They also said that for the period after 1st October 2019 the said supply falls under Sl. No. 7(ii) of Not. No. 11/2017- CT (R), dated 28.06.20 17 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) and no input tax credit will be credited for the GST charged on such goods and services listed under this notification also.

Thirdly, the applicant had sought the ruling of the AAR as to what will be the rate of GST applicable on party orders or the orders sold in bulk on which the bench said that the provisions of Not. No. 11/2017- CT(R), dated 28.06.20 17 (as amended) will not be applicable on such supplies.

Fourthly, the applicant had sought the ruling of the AAR as to what will be the rate of GST applicable on party orders that includes serving the ice cream with special ingredients like fruits, dry fruits, sauce, syrups etc. on which the bench said that the provisions of Sl. No. 7(v) of Not. No. 11/2017-CT (R), dated June 28, 20 17 (as amended) and attracts 18% GST (9% CGST + 9% SGST) for the period from November 15, 2017, to September 30, 2019, and no input tax credit will be credited for the GST charged on such goods and services listed under this notification also.

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Lastly, the applicant had sought the ruling of the AAR as to what will be the rate of GST applicable on ice cream and allied products sold in parlours like cones, bars, sticks, family packs, party packers, etc. sold to the vendors, pushcarts who in sell it to the customers. On which the bench said that the provisions of Not. No. 11/2017- CT(R), dated 28.06.2017 (as amended) will not be applicable.