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Delhi HC directed GST Council to reconsider manufacturers of icecream for composition scheme

  • 14 Apr 2021
  • 64


The petitioner was representing the interest of more than 50 small scale ice cream manufacturing units operating in the National Capital Territory of Delhi. It filed the petition against the decision dated 18th June, 2017 of the Goods and Services Tax Council to exclude ice cream from the benefits of Composition Scheme under section 10 of the CGST Act, 2017. It contended that the said exclusion would be in violation of the spirit of Articles 14 and 19 of the Constitution of India and against the principles of natural justice.


The revenue submitted that the reason for such exclusion was that there was no GST on milk, being a large constituent of ice-cream and if small manufacturers of ice-cream were to be given benefit of section 10(1), there would be large scale loss of revenue. The petitioner contended that ice-cream comprised of a large number of other components which were assessable to GST and thus reasoning emanating from minutes of meeting of GST Council for excluding ice-cream from benefit of section 10(1) was fallacious.


The Honorable Court after hearing arguments from the both parties directed the GST Council to reconsider the exclusion of small scale manufactures of ice cream from the benefit of section 10(1) of the CGST Act, 2017.