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AAR Clarifies GST on Ice Cream: Goods or Restaurant Service & 5% Rate

TaxGuru•
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Summary

AI-Generated
  • The Gujarat AAR has clarified that ice cream sold over the counter and manufactured outside retail outlets is classified as a supply of goods, not restaurant service.
  • This classification hinges on the manner of supply, impacting how GST is applied.
  • The ruling specifies a 5% GST rate for ice cream categorized as goods.
  • This decision could influence pricing strategies and tax compliance for ice cream vendors across India.

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