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GST on supply of Ice cream and ice cream allied products, milk shakes served in the parlour

Authority for Advance Ruling — Taxability on ice Cream products – The applicant, a partnership firm are the distributors of “SCOOPS” brand ice cream and ice cream products are supplied by them to sub-distributors, hotels, party orders and retail outlets. In Cream Stone Parlors, ice cream is served according to the customer taste i.e. scoops of different flavors of ice creams mixing with nuts, fruits and sauces served to the customers according to his/her taste(this includes both dine in and takeaway).The applicant sought an advance ruling with regard to the applicability of provisions of Notification No. 46/2017-CT(R), dated 14.11.2017 to the activities pertaining to (i) Ice cream and ice cream allied products, milk shakes served in the parlour with or without adding ingredients like fruits or topping sauces according to the customer taste or requirements, (ii) Ice cream and ice cream allied products sold in the parlour as such i.e. cups, cones, bars, sticks, novelties, ½ litre packs, party pack and bulk packs etc. (iii) Party orders: sale of bulk ice creams to caterers as takeaway, (iv) Party orders: Serving of ice creams with incidents like fruits or topping as per the guest requirements or taste, (v) Ice cream products of cups, cones bars, sticks, novelties etc sold to pushcart vendors, who in turn sell to their customers.
Held that:- The Hon’ble Authority for Advance Ruling held that for the period from 15.11.2017 to 30.09.2019, the supply of Ice cream allied products, milk shakes served in the parlour falls under Sl. No. 7(i) of Not. No. 11/2017-CT (R) and attracts 5% GST without ITC. For the period from 01.10.2019, the said supply falls under Sl. No. 7(ii) of Not. No. 11/2017-CT (R) and attracts 5% GST. The provisions of Notfn No. 11/2017-CT(R) are not applicable on Party orders, sale of bulk ice creams to caterers as takeaway. Supply of ice creams with incidents like fruits or topping as per the guest requirements or taste for Party orders falls under Sl. No. 7(v) of Not. No. 11/2017-CT (R) and attracts 18% GST for the period from 15.11.2017 to 30.09.2019. The provisions of Not. No. 11/2017-CT(R), are not applicable on Ice cream products of cups, cones bars, sticks, novelties etc. sold to pushcart vendors, who in turn sell to their customers.— Sri Venkateshwara Agencies, In Re… [2020] 22 TAXLOK.COM 113 (AAR-Telangana)