Please Help. GST for ice cream parlour

Can a ice cream parlour supplying goods through E-commerce Operator, charge 5% GST without taking ITC.
Replies (2)
Quick Summary
Ice cream parlours, even when selling via e-commerce operators, are classified as suppliers of goods, not restaurants. This means they generally must charge 18% GST and are eligible to claim Input Tax Credit (ITC) on their expenses. While ice cream itself can be taxed at 5% as a good, this rate applies with ITC, and the parlour, not the e-commerce operator, is responsible for paying the tax.

No. Only 18% with ITC.

Since 22 Sep 2025 ice cream itself is 5% as goods, and a parlour selling manufactured ice cream is a supply of goods, not restaurant service (Circular 164/20/2021) — so 5% applies but as a goods rate with ITC allowed, and because it's goods, Sec 9(5) doesn't apply: you, not the e-commerce operator, pay the tax (the ECO deducts 0.5% TCS).

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