TaxTMI 
TaxTMI 
Sir. selling self prepared ice cream in a shop , where burger and sandwich and other chat items too are sold . Can it be categorised as Restaurant charge 5%? or Tax rate differ?
Tax Rate of goods after 01.10.2021
08 Oct 2021 
10 Replies 
1860 Views Asked by
Tax classification of food supplies: restaurant service treatment can change the applicable tax rate for ice cream sold with service elements.
Self-prepared ice cream sold independently or through an exclusive ice cream parlour is a supply of goods and attracts the goods tax rate; ice cream supplied as part of restaurant services where service elements (ambience, seating) make restaurant service the principal supply should attract the restaurant tax rate. Vending-machine preparation without branding does not change the supply character. Departmental clarifications differ from judicial considerations and litigation risk exists; an advance ruling is recommended for borderline cases. (AI Summary)
Self-prepared ice cream sold independently or through an exclusive ice cream parlour is a supply of goods and attracts the goods tax rate; ice cream supplied as part of restaurant services where service elements (ambience, seating) make restaurant service the principal supply should attract the restaurant tax rate. Vending-machine preparation without branding does not change the supply character. Departmental clarifications differ from judicial considerations and litigation risk exists; an advance ruling is recommended for borderline cases. (AI Summary)