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π¦πΈ Softy Ice Cream Shocker! π² Higher GST on Your Favorite Frozen Treat πΈπ¦ Bad news, ice cream lovers! π₯ A recent ruling by the GST Authority for Advance Rulings (AAR) in Rajasthan has declared that softy ice cream mix will now attract a higher GST rate of 18%. Why? Because it's mainly made of sugar, not milk! π€―
Here's the scoop: Sugar overload: The AAR found that softy ice cream mix contains more sugar (61.2%) than milk solids (34%). Since sugar is the main ingredient, it doesn't qualify as a "natural" dairy product.
Additives matter: The presence of stabilizers and flavorings further disqualifies it from the lower GST rate applied to milk-based products.
Company's plea rejected: VRB Consumer Products, a manufacturer of softy ice cream mix, argued that their product should be taxed at a lower rate (5%) since it contains milk solids. However, the AAR disagreed. What does this mean for you?
π¦ Higher prices: Get ready to shell out more for your favorite softy cones and cups. π€ More GST confusion: This ruling highlights the complexities of GST classifications and how even seemingly simple products can face unexpected tax rates.
The GST saga continues: This isn't the first time dairy products have faced GST scrutiny. Lassi, a fermented milk drink, was previously exempted from GST, while flavored milk was taxed at 12%. It seems the battle over what qualifies as a "milk product" is far from over. π€·ββοΈ What are your thoughts on this ruling? Share your opinions in the comments below! π
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