GST Council refers composition scheme for ice cream makers back to Fitment Committee
May 30, 2021
‘Given the high value addition, the revenue implication is significant’
The ice cream sector will have to wait to be included in the Composition Scheme of Goods & Services Tax, with the GST Council referring the matter back to the Fitment Committee.
This issue is critical for small ice cream manufacturers. This February the Delhi High Court said that the GST Council should reconsider exclusion of ice cream from the list of manufacturers eligible for composition scheme within three months. Under the scheme, the assesses, manufacturers and traders of goods have to pay 1 per cent of turn over as tax; restaurants not serving alcohol 5 per cent; and other service providers 6 per cent. Businesses with annual turnover of up to ₹1.5 crore can opt for composition scheme but they will not get the benefit of input tax credit.