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Gst rate of ice cream parlours

Sunil (CA Practice ) (69 Points)

22 February 2018

I HAVE AN ICE CREAM PARLOUR WE WE MAKE ICR CREAMS OF DIFFERENT FLAVOURS AND SELL TO CUSTOMERS. ALONG WITH THIS WE KEEP SNAKS LIKE PIZZA BURGER ETC BUT MAJOR COMMODITY IS ICE CREAM. ARE WE ELIGIBLE FOR 5% TAX RATE WE ARE UNDER REGULAR SCHEME.OR ARE WE REQUIRED TO COLLECT FULL RATE OF TAX AND CLAIN INPUT TAX

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5 Replies

Sumit Sarswat (Student) (3154 Points)
Replied 22 February 2018

no you can't take advantage of composition scheme.
you have correct gst at normal (full) rate and claim input tax

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Sumit Sarswat (Student) (3154 Points)
Replied 22 February 2018

to claim benefit of composition scheme (i.e. 2% for manufacturers) you should engage in exclusively in goods other than excluded from composition scheme

Sunil (CA Practice ) (69 Points)
Replied 23 February 2018

the dealer is under regular scheme only not under composition his main business in ice cream and he also seels snaks it a self service counter whether he can pay tax at 5% without claiming input as the rates are applicable to resturants now or he has to pat tax at 18% and claim input

Sumit Sarswat (Student) (3154 Points)
Replied 23 February 2018

if he is in business of manufacturing of ice creme then he can cannot claim composition scheme.

if he runs a restaurant and also offer ice creams only for sale (not manufacture but only trade in ice cream) then he can avail benefit of composition scheme.