GST on Ice Cream – A Scoop of Flavour and a Spoonful of Tax

Picture this: Priya walks into an ice cream parlour in Bengaluru and orders three waffle cones at ₹120 each. She expects a ₹360 bill. But surprise! The cashier says, “₹424.80, madam.” Her eyes widen. “What happened?” The answer is simple and not so sweet — GST on Ice Cream.

There are typically three tax rates applicable depending on how and where the ice cream is sold — 5 %, 18 %, or 28 %.

To put it simply, for every ₹1,000 spent on packaged, branded ice cream, a consumer may be paying up to ₹180 in tax. In restaurants, that tax may drop to ₹50. In contrast, street-sold kulfis might carry no tax at all.

In this blog, we are digging deep into the delicious world of frozen desserts to reveal what exactly you are paying when you buy that scoop of Belgian chocolate.

Jab ice cream ho itni meethi, toh tax bhi hoga thoda teekha!

GST on Ice Cream – Categories, Prices, and Tax Rates

To understand how prices change with taxation, here is a table showing ice cream categories, their average prices, and the applicable GST on Ice Cream:
 

So, if someone like Manoj buys five gourmet sundaes priced at ₹500 each, he will pay ₹3,200 in total due to ₹700 in GST.

HSN Codes for Ice Cream

The HSN (Harmonised System of Nomenclature) Codes classify goods for taxation. Every type of ice cream product has a specific HSN code, helping ensure the correct GST on Ice Cream is charged.
 

You can verify these codes using the official CBIC HSN Code Search Tool.

HSN code ka magic hai anokha – sahi tax lagana hai zaroori kaam sabka!

Types of Ice Cream and Their GST Applicability

Different kinds of ice cream products attract different GST rates based on their branding, packaging, and point of sale. This table outlines that clearly:
 

Now let us consider a real-world numerical example:

Example: Ravi visits a posh café and buys three servings of ice cream priced at ₹400 each. The café charges 5 % GST.

• Base cost = ₹400 x 3 = ₹1,200
   
• GST @ 5 % = ₹60
   
• Final bill = ₹1,260
   

Now imagine if he had bought those three from a supermarket, where the same tubs have 18 % GST:

• Base cost = ₹1,200
   
• GST @ 18 % = ₹216
   
• Final bill = ₹1,416
   

Same ice cream, but the serving style changes your tax bite.

Bartan badlo, tax rate badal jaata hai – GST ne sabko confuse kar daala hai!

Impact of GST on the Ice Cream Industry – Real Examples

Let us explore how GST on Ice Cream has affected manufacturers, vendors, and customers.

Case Study One: Creamy Delights Private Limited

A small-scale ice cream factory in Pune manufactures 10,000 units a month, each priced at ₹60. They sell to supermarkets and collect 18 % GST.

• Monthly Revenue (pre-GST) = ₹60 x 10,000 = ₹6,00,000
   
• GST Collected = ₹6,00,000 x 18 % = ₹1,08,000
   

They pass this cost to retailers, who then add it to the final price. The end consumer ends up paying ₹70.80 per unit instead of ₹60.

Case Study Two: Local Vendor in Jaipur

A street vendor in Jaipur sells handmade kulfi for ₹25. As the product is neither branded nor pre-packed, he does not charge any GST.

This helps him keep his prices low and attract large numbers of daily-wage workers, students, and tourists.

Local taste aur zero tax – is combo ka jawab nahi!

Input Tax Credit (ITC) on Ice Cream

Input Tax Credit (ITC) allows businesses to reclaim the GST they pay on raw materials and services used to make taxable goods. In the case of GST on Ice Cream, this credit is a game changer for manufacturers and retailers.
 

Example: ITC in Practice

Suppose Frosty Fusions spends ₹2,00,000 on raw materials and logistics in a month. The GST paid is 18 %.

• GST on inputs = ₹2,00,000 x 18 % = ₹36,000

If their output GST on sold products is ₹50,000, then:

• Net GST payable = ₹50,000 - ₹36,000 = ₹14,000

This allows the business to stay competitive by keeping product prices reasonable while staying tax compliant.

Jo business kare smart calculation, wahi paaye tax relaxation!

Conclusion – Ice Cream is Sweet, But the Tax is Not Always Cool

India’s love for ice cream is growing by the day, but so is the complexity around its taxation. The GST on Ice Cream adds layers to your dessert — not of chocolate or caramel, but of percentages, codes, and legal definitions.

Whether you buy it at a store, enjoy it at a restaurant, or savour it from a street cart, each one comes with its own tax twist. Understanding these differences can help you make smarter, sweeter decisions.

So, next time someone offers you a second scoop, ask:

“Is it a 5 % scoop, an 18 % scoop, or a 28 % delight?”

And always remember:

Tax bhar ke bhi zindagi meetha reh sakta hai – bas thoda hisaab rakhna zaroori hai!

For more information, visit the official Goods and Services Tax Portal and always demand a tax invoice when required.

Frequently Asked Questions (FAQs) Related to GST on Ice Cream

Q1: Is there GST on kulfi or street ice cream?
If the item is not branded or pre-packed, it is exempt from GST.

Q2: Why is restaurant ice cream taxed at 5 %?
Restaurant service is a composite supply, where food service carries a concessional GST of 5 % without Input Tax Credit.

Q3: Can a manufacturer claim GST on milk used for ice cream?
Yes, if the ice cream is taxable, GST paid on milk and other inputs can be claimed as ITC.

Q4: Is GST applicable when ordering ice cream online?
Yes, GST is added at the same rate applicable to the product type — usually 18 % for packaged ice cream.

Q5: Where can I verify if GST was correctly applied on my bill?
Use the GST Portal Invoice Checking Tool to verify dealer credentials and invoice formats.

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