Ice cream companies pin hopes on post-election GST rate cut
Ice cream companies have doubled down on their efforts to reduce GST rate by approaching the President, who has duly forwarded their representation to the Finance Ministry. Subsequently, they have key Finance Ministry officials with a plea for lowering the tax.
Ice cream, sold through shops or parlours attracts 18 per cent GST. However, if it is bundled with food supplies by hotels or restaurants, it is treated as part of ‘restaurant service’ and attracts 5 per cent GST. The GST Council can decide on any rate cut, which is expected to meet soon after the formation of the new government at the Centre and also in some States.
“We request that the GST Council may kindly consider reducing the rate of GST of ice cream/frozen dessert to 5 per cent across the board and by this initiative the price of the product would come down thereby raising the demand/consumption of ice creams amongst the people of India,” Indian Ice-Cream Manufacturers’ Association said in a representation to the Finance Ministry.
