GST council is directed to reconsider the exclusion of small scale manufactures of ice cream from the benefit of Section 10(1) of the Act
Section 10 of the CGST Act, 2017—Composition Scheme -- The petitioner challenged the decision dated 18th June, 2017 of the GST Council, in exercise of powers under Section 10(2)(e) , of exclusion of ice cream from the benefits of Composition Scheme under Section 10 of the Act. The petitioner counsel submitted that respondent council has clubbed ice cream with pan masala and tobacco and contended that the reason which prevailed for excluding ice cream was that there is 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) of the Act, there would be large scale loss of revenue. The respondent counsel submitted that besides pan masala and tobacco, aerated water has also been excluded from the benefit of Section 10(1) of the Act.
Held that:-The Hon’ble High Court directed the respondent Council to reconsider the exclusion of small scale manufactures of ice cream from the benefit of Section 10(1) of the Act, including on the aforesaid two parameters i.e. the components used in the ice cream and the GST payable thereon and other similar goods having similar tax effect continuing to enjoy the benefit, within three months
GST council is directed to reconsider the exclusion of small scale manufactures of ice cream from the benefit of Section 10(1) of the Act
Section 10 of the CGST Act, 2017—Composition Scheme -- The petitioner challenged the decision dated 18th June, 2017 of the GST Council, in exercise of powers under Section 10(2)(e) , of exclusion of ice cream from the benefits of Composition Scheme under Section 10 of the Act. The petitioner counsel submitted that respondent council has clubbed ice cream with pan masala and tobacco and contended that the reason which prevailed for excluding ice cream was that there is 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) of the Act, there would be large scale loss of revenue. The respondent counsel submitted that besides pan masala and tobacco, aerated water has also been excluded from the benefit of Section 10(1) of the Act.
Held that:-The Hon’ble High Court directed the respondent Council to reconsider the exclusion of small scale manufactures of ice cream from the benefit of Section 10(1) of the Act, including on the aforesaid two parameters i.e. the components used in the ice cream and the GST payable thereon and other similar goods having similar tax effect continuing to enjoy the benefit, within three months