GST on ice cream parlours may lead to litigation, say experts

The Council said ice cream parlours would draw 18% GST

Certain clarifications by the GST Council, such as tax rates on ice cream parlours and royalty paid to state governments over mineral rights, may turn out to be contentious and lead to litigation, feel some experts.

The council, at its meeting in Lucknow on Friday, had clarified that ice cream parlours will attract goods and services tax (GST). The clarification said these parlours sell already manufactured ice cream and such supply would draw 18 per cent tax.

Abhishek Rastogi, partner at Khaitan & Co., who is arguing 200 petitions for different sectors, including food and beverages, said ice cream parlours are akin