Exclusion of small scale ice cream manufacturers from composition scheme benefit to be reconsidered by GST Council

Last updated: 23 February 2021

Save Share

Quick Summary

The Delhi High Court has ordered the GST Council to reconsider the exclusion of small-scale ice cream manufacturers from the benefits of the GST Composition Scheme. The court highlighted that other similar goods with comparable tax implications continue to benefit from the scheme. The Council is expected to discuss this matter in its upcoming meeting and make a decision promptly, especially as the ice cream season is commencing.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in Del Ice Cream Manufacturers Welfare's Association v. Union of India and Anr. [Writ Petition No. 5252/2019 and others dated February 9, 2021] directed the GST Council to reconsider the exclusion of small scale manufactures of ice cream from the benefit of Composition Scheme under Section 10(1) of the Central Goods and Services Tax, 2017 ('CGST Act') on the basis of two parameters'i.e. the components used in the ice cream and the GST payable thereon and other similar goods having similar tax effect continuing to enjoy the benefit. It was further directed that GST Council should discuss the aforesaid aspect in its next meeting and to take a decision thereon at the earliest, keeping in view that the ice cream season has just begun.

Citation :
Writ Petition No. 5252/2019 and others dated February 9, 2021

Daily Limit Reached