gst on ice cream parlour need clarification

[Satbir singh wahi]

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

Pre-manufactured ice cream sales remain supplies of goods, requiring goods-rate GST treatment and supplier responsibility for platform transactions.
Sale of already manufactured ice cream, kulfi and similar frozen desserts without substantial cooking or preparation is treated as a supply of goods, attracting GST with input tax credit eligibility rather than the concessional restaurant-service rate without credit. HSN 2105 is appropriate for ice cream and comparable edible ice products, while HSN 0402 generally does not apply to prepared ice cream retail sales. For platform sales, electronic commerce operator liability applies only where the underlying supply is restaurant service; goods suppliers remain responsible for GST. Tax treatment, invoicing and platform arrangements should reflect the actual supply model.