gst on ice cream parlour need clarification

[satbir singhwahi]

GST Clarification Query - Ice Cream Parlour Business

Dear Sir/Madam,

We seek your clarification regarding the GST applicability on our client engaged in the business of retail sale of ice cream products.

Business Nature:

Our client is engaged in the retail sale of:

Kulfi

Faluda

Milk Badam

Ice Cream products

Sales are made through:

Direct counter sales from the shop

Online food delivery platforms such as Zomato and Swiggy

The HSN codes presently being used are:

HSN 21050000

HSN 0402

We request clarification on the following GST matters:

Applicable GST Rate

Whether the business shall be treated as an 'Ice Cream Parlour' under GST provisions and whether GST should be charged at:

5% without ITC, or

18% with ITC

Correct HSN Code

Whether the HSN codes presently used by us i.e.:

21050000

0402

are correct for the products sold, or whether any other HSN code is required to be used.

GST Treatment for Zomato / Swiggy Sales

Currently, Zomato and Swiggy are charging GST @ 5% from customers on supplies made through their platforms.

However, our client is filing GST returns by paying GST @ 18% and claiming Input Tax Credit (ITC).

Kindly clarify:

Whether this treatment is correct under GST law.

Whether GST should instead be paid at 5% without ITC.

Whether any adjustment or different treatment is required for online platform sales.

Kindly provide your valuable guidance on the above matters.

Thanking You.

AI Summary

Ice cream parlour GST classification and input tax credit treatment for retail and online platform sales Clarification is sought on the GST treatment of a retail business selling kulfi, faluda, milk badam and ice cream products through counter sales and online food delivery platforms. The issue concerns whether the activity should be treated as an ice cream parlour for GST purposes, with corresponding liability at 5% without input tax credit or 18% with input tax credit, and whether the HSN codes presently used are appropriate. Clarification is also sought on the GST treatment of sales made through Zomato and Swiggy and whether any different treatment applies to platform-based sales.