Classification of gst for our shop

[Pavan Mp]

Hello

We have a juice and ice-cream shop where in we prepare everything in house. No packed product. Served to customer on order basis who will consume in shop only. Please can you specify to which category does our shop belongs

[Sanjeev Agarwal]

Based on the facts provided, your business would generally fall under the restaurant service category under GST, not as a manufacturer or supplier of packaged ice cream.

Business Profile

From your description:

• You prepare juice and ice cream entirely in-house.

• No branded or pre-packed products are sold.

• Products are prepared/served only on customer order.

• Customers consume them within the shop.

• There is no sale of packaged ice cream for takeaway as a retail product.

GST Classification

Your establishment is best classified as a restaurant/eating establishment supplying restaurant service, because the dominant supply is food and beverages prepared and served for immediate consumption.

The supply of:

• Fresh fruit juices,

• Freshly prepared ice cream,

• Sundaes,

• Milkshakes,

• Falooda,

• Desserts prepared in-house,

served to customers for consumption in the premises, is generally treated as restaurant service.

Why it is not a packaged ice cream outlet

It is not akin to:

• a retailer selling packaged ice creams,

• a supermarket,

• a distributor of branded ice creams,

• or a manufacturer supplying packaged goods.

Those businesses supply goods.

Your business supplies prepared food/beverages as part of restaurant service.

GST implications

If your establishment qualifies as a restaurant:

• The applicable GST rate is generally 5% (2.5% CGST + 2.5% SGST) on restaurant services.

• Input Tax Credit (ITC) is generally not available on inputs and input services used for providing such restaurant services (subject to statutory exceptions).

Important qualification

The position may change if you also:

• manufacture ice cream in-house and sell it in sealed tubs or containers for takeaway,

• supply through distributors,

• make wholesale supplies,

• or separately sell packaged products.

In such cases, part of your business may constitute a supply of goods, attracting different GST treatment.

To confirm the classification conclusively

Please clarify:

1. Do you provide seating and table service, or is it a takeaway counter?

2. Do you also sell sealed takeaway tubs of your own ice cream, or is every serving scooped/prepared fresh on order?

3. Do you sell through Swiggy/Zomato as prepared food items only, or do you also sell packaged products?

These facts will determine whether the entire business qualifies as restaurant service or whether there is a mixed supply involving both restaurant services and sale of goods.

[Pavan Mp]

Hello

Thanks for the response.

As you have asked for table or seating arrangement, we dont have table service only seats to consume when ordered.

Freshly in the sense will be prepare in advance to freeze and will be in container not in any packed material. No sealed takeaways.

No online orders.

AI Summary

GST classification of in-house juice and ice-cream supplies for on-premises customer consumption requires identification of the applicable category.
GST classification is sought for an in-house juice and ice-cream shop that prepares products on its premises, supplies no packaged goods, and serves customers against orders for consumption within the shop.