Ice cream topping crackle likely to attract 18 per cent GST on AAR ruling
Although the AAR did not specify the applicable GST rate, experts anticipate that it will indeed be 18 per cent, contrary to the applicant’s request for a 12 per cent rate. This decision pertains to a product commonly known as NBS crackle, composed primarily of sugar but also containing ingredients like cashew nuts, butter and glucose.
The applicant primarily supplies this product to ice cream manufacturers such as Hindustan Unilever Ltd and Dairy Classic Ice Creams to be used as a topping for ice creams.
The applicant’s argument was based on the classification of the topping as sugar boiled confectionery, which is subject to a 12 per cent GST rate. However, the court held that the product in question is not intended for direct consumption by end users. Instead, it is specifically sold to ice cream manufacturers as an essential industrial input.
