The recent Circular No. 164 /20 /2021-GST from CBIC dated 6th October, 2021 has clarified that all ice cream parlours “would attract GST at the rate of 18%”. The circular also states that “Ice cream parlors sell already manufactured ice- cream and they do not have a character of a restaurant” and that “supply of ice-cream parlor stands on a different footing than restaurant service. Their activity entails supply of ice cream as goods (a manufactured item) and not as a service,”.
I have the following questions:
- What is the date of applicability of this clarification, i.e. from which date are ice cream parlours expected to pay GST at 18%? Is a retrospective charge from Nov 2017 possible?
- Will ice cream parlours who operate like a restaurant and provide table service fall under this ruling?
- In case ice cream parlours are treated as dealing in supply of goods, can they opt for GST composition scheme and pay GST at the rate of 1%, in cases where turnover is below 1.5 Crore per annum?
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