Understanding GST on Ice Cream Parlours in India

Goods and Services Tax (GST) is a major component of India's tax system, playing a vital role in standardizing the tax structure across the country. Ice cream parlours, being a part of the frozen dessert industry, are subject to GST under specific tax rates. This article provides a comprehensive guide to the GST applicable on ice cream parlours, including the frequency and context of its application and the importance of staying updated with the latest tax regulations.

GST Rates on Ice Cream and Related Products

Typically, the GST applicable on the sale of ice cream and related products in ice cream parlours is 18%. This 18% GST is divided into two components: 9% each of Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST). However, it is crucial to recognize that the GST rate can vary depending on specific circumstances or changes in legislation. Always check the latest guidelines from the Goods and Services Tax Council (GST Council) or consult a tax professional for the most accurate and up-to-date information.

Composition Scheme and Additional Items

It is also worth noting that if an ice cream parlour sells snacks along with ice cream, the service can be treated as a restaurant service, attracting a lower GST rate of 5%. This provision is part of the Composition Scheme, which allows businesses to pay a simplified tax rate instead of calculating the complex CGST and SGST elements. To benefit from the Composition Scheme, businesses must meet certain criteria, and it's advisable to consult with a tax professional to determine if your business qualifies.

Latest GST Rates and Tax Council Policies

For accurate and up-to-date GST rates, it is recommended to refer to official sources such as the GST rate finder on Google or the Central Board of Indirect Taxes and Customs (CBDT) website. These resources provide the latest HSN (Harmonized System of Nomenclature) codes and tax rates for various commodities, including ice cream. Relying on outdated information or answers from unofficial sources could lead to complications during filing and could even result in penalties if your GSTR (Goods and Services Tax Return) is incorrectly filed.

GST Levies on Ice Cream Manufacturers

Interestingly, GST is not levied on ice cream manufacturers. This distinction is based on the fact that ice cream is primarily a food product, and its production is regulated separately from retail sales. Manufacturers are generally subject to different taxes such as excise duties or may be registered under the composition levy scheme, depending on their turnover.

Conclusion

In conclusion, understanding the GST on ice cream parlours involves keeping track of both CGST and SGST, as well as factors such as the Composition Scheme. Regularly checking official websites and consulting with professionals can help ensure compliance with the latest tax regulations. By staying informed and proactive, ice cream parlours can navigate the complexities of GST effectively and maintain smooth operations.