GST Ruling on Ice Cream Supply Activities: Clarification on Tax Rates and Conditions

The case analyzed the applicability of Notification No. 46/2017-CT(R) on various ice cream supply activities. The ruling clarified tax rates and conditions for ice cream and allied products served in parlors, ice cream products sold in parlors, bulk ice cream sales to caterers, serving ice creams at party orders with additional ingredients, and ice cream products sold to pushcart vendors. The Advance Ruling specified the applicable GST rates for each scenario, providing clarity on the taxation of different ice cream supply activities.

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Issues Involved:
1. Applicability of Notification No. 46/2017-CT(R) on various ice cream supply activities.
2. Tax rate and conditions for ice cream and allied products served in parlors.
3. Tax rate for ice cream products sold in parlors as such.
4. Tax implications for bulk ice cream sales to caterers.
5. Tax rate for serving ice creams at party orders with additional ingredients.
6. Tax implications for ice cream products sold to pushcart vendors.

Detailed Analysis:

Issue 1: Applicability of Notification No. 46/2017-CT(R) on Various Ice Cream Supply Activities
The applicant sought clarity on the applicability of Notification No. 46/2017-CT(R) dated 14.11.2017, which amends Notification No. 11/2017-CT(R) dated 28.06.2017. The analysis considered the updated position of the notification as amended by subsequent notifications, including the latest amendment dated 30.09.2019.

Issue 2: Tax Rate and Conditions for Ice Cream and Allied Products Served in Parlors
The supply of ice cream and allied products, including milkshakes served in parlors with additional ingredients, falls under the definition of 'restaurant service'. This is covered under Sl. No. 7(ii) of Notification No. 11/2017-CT(R) as amended, attracting 5% GST (2.5% CGST + 2.5% SGST) without input tax credit from 01.10.2019. For the period from 15.11.2017 to 30.09.2019, it falls under Sl. No. 7(i) with the same tax rate and conditions.

Issue 3: Tax Rate for Ice Cream Products Sold in Parlors as Such
Ice cream products sold in parlors as such (cups, cones, bars, sticks, novelties, etc.) for both dine-in and takeaway purposes also fall under 'restaurant service'. These supplies attract 5% GST (2.5% CGST + 2.5% SGST) without input tax credit from 01.10.2019 under Sl. No. 7(ii). For the period from 15.11.2017 to 30.09.2019, they fall under Sl. No. 7(i) with the same tax rate and conditions.

Issue 4: Tax Implications for Bulk Ice Cream Sales to Caterers
The sale of bulk ice creams to caterers as takeaway is considered a supply of goods without any service element. Therefore, the provisions of Notification No. 11/2017-CT(R) are not applicable to this transaction.

Issue 5: Tax Rate for Serving Ice Creams at Party Orders with Additional Ingredients
Serving ice creams with additional ingredients at party events falls under 'outdoor catering' as defined in para 4(xxxiii) of Notification No. 11/2017-CT(R). For the period from 15.11.2017 to 30.09.2019, this supply falls under Sl. No. 7(v) and attracts 18% GST (9% CGST + 9% SGST). From 01.10.2019, it falls under Sl. No. 7(iv) and attracts 5% GST (2.5% CGST + 2.5% SGST) without input tax credit.

Issue 6: Tax Implications for Ice Cream Products Sold to Pushcart Vendors
The sale of ice cream products (cups, cones, bars, sticks, novelties, etc.) to pushcart vendors, who in turn sell to their customers, is considered a supply of goods without any service element. Hence, the provisions of Notification No. 11/2017-CT(R) are not applicable to this transaction.

Advance Ruling:
1. Ice cream and allied products served in parlors:
- From 15.11.2017 to 30.09.2019: 5% GST (2.5% CGST + 2.5% SGST) under Sl. No. 7(i).
- From 01.10.2019: 5% GST (2.5% CGST + 2.5% SGST) under Sl. No. 7(ii).

2. Ice cream products sold in parlors as such:
- From 15.11.2017 to 30.09.2019: 5% GST (2.5% CGST + 2.5% SGST) under Sl. No. 7(i).
- From 01.10.2019: 5% GST (2.5% CGST + 2.5% SGST) under Sl. No. 7(ii).

3. Bulk ice cream sales to caterers:
- Provisions of Notification No. 11/2017-CT(R) are not applicable.

4. Serving ice creams at party orders with additional ingredients:
- From 15.11.2017 to 30.09.2019: 18% GST (9% CGST + 9% SGST) under Sl. No. 7(v).
- From 01.10.2019: 5% GST (2.5% CGST + 2.5% SGST) under Sl. No. 7(iv).

5. Ice cream products sold to pushcart vendors:
- Provisions of Notification No. 11/2017-CT(R) are not applicable.

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