Ice cream topping crackle likely to attract 18 per cent GST on AAR ruling
Sale of ice cream would draw 5 per cent or 18 per cent goods and services tax (GST), depending on how it is sold.
The one sold over the counter and not prepared in the outlet concerned would be treated as ice cream from parlour. It would hence attract 18 per cent GST, ruled the Gujarat-based Authority for Advance Rulings (AAR). The sale of such ice creams would be treated as the supply of goods, it said. On the other hand, an ice cream when ordered and supplied along with cooked or prepared food through the outlets would assume the character of composite supply. It would draw 5 per cent GST without input tax credit. Such a sale would be treated as composite supply with food as the principal one and come under restaurant services, ruled the AAR.