The Authority of Advance ruling (AAR) ruled on the applicability of Goods and Service Tax (GST) on ice cream, allied products, and milkshakes.
The applicant, M/s Sri Venkateswara Agencies is a partnership firm. The firms 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 Hyderabad. They deal with ice-cream products in various places such as Cream stone parlors, Scoops parlors, and sell ice cream to caterers and pushcart vendors, etc.
Firstly, the applicant sought advance ruling on the issues of how much GST would be applicable on ice cream and ice cream allied products, milkshakes served in the parlor with or without adding ingredients like fruits or topping sauces according to the customer taste or requirements.
The authority consists of Additional Commissioner of State Tax J. Laxminarayana and Joint Commissioner of Central Tax B. Raghukiran clarified that for the period from November 15, 2017, to September 30, 2019, the supply falls under Sl.No. 7(i) of Not. No. 11/2017-CT (R), dated June 28, 20 17 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) without the availability of credit of input tax charged on goods and services used in supplying the service.
Further, for the period from October 1, 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) without the availability of credit of input tax charged on goods and services used in supplying the service.
Secondly, the ruling was sought on the issues of how much GST would be applicable on ice cream and ice cream allied products sold in the parlor as such i.e. cups, cones, bars, sticks, novelties, 1/2 liter packs, party pack, and bulk packs, etc.
The authority clarified that for the period from November 15, 2017, to September 30, 2019, the supply falls under Sl.No. 7(i) of Not. No. 11/2017-CT (R), dated 28.06.20 17 (as amended) and attracts 5% GST (2.5% CGST + 2.5% SGST) without the availability of credit of input tax charged on goods and services used in supplying the service.
Further, for the period from October 1, 2019, the said supply falls under Sl. No. 7(ii) of Not. No. 11/2017-CT (R), dated June 28, 2017 (as amended) and attracts 5% GST (2.5% CGST+2.5% SGST) without the availability of credit of input tax charged on goods and services used in supplying the service.
Thirdly, the ruling was sought on the issues of how much GST would be applicable on party orders i.e. sale of bulk ice creams to caterers as a takeaway.
The authority clarified that the provisions of Not. No. 11/2017- CT(R), dated 28.06.20 17 (as amended) are not applicable.
Fourthly, the ruling was sought on the issues of how much GST would be applicable on party orders i.e. serving of ice creams with incidents like fruits or topping as per the guest requirements or taste.
The authority clarified that Supply falls under 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.
Supply falls under Sl. No. 7(iv) of Not. No. 11/2017-CT (R), dated June 28, 2017 (as amended) and attracts 5% GST (2.5% CGST+2.5% SGST) without the availability of credit of input tax charged on goods and services used in supplying the service for the period from October 1, 2019.
Lastly, the ruling was sought on the issues of how much GST would be applicable on ice cream products of cups, cones bars, sticks, novelties, etc. sold to pushcart vendors, who in turn sell to their customers.
The authority clarified that the provisions of Not. No. 11/2017- CT(R), dated 28.06.2017 (as amended) are not applicable.
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