dairy news

In Covid times when ice cream business has got maximum beating in terms of sales, Authority of Advance Rulings ( AARs) level created a confusion for every one by slapping 5 % GST without ITC ( Input tax credit) on ice cream served at Ice cream parlors and home parties. As per AAR that Ice cream parlor is an eating joint like a restaurant and certain other services like seating capacity, Air conditioner, etc. In other states like Karnataka in the case of Hatsun Agro Product Ltd , AAR held that supplying ice creams made as per orders of customers and served in outlets qualifies as ‘composite supply’ and will attract 5% GST without ITC. Such decisions always creates a confusion over different product categories and becomes more of discretionary nature.