CBIC has clarified vide Circular No. 177/09/2022-TRU dated 03/08/22, that with effect from 06.10.2021, ice-cream parlors are required to pay GST@18% (with ITC).

It is further clarified that past cases of payment of GST on supply of ice-cream by ice-cream parlors @5% (without ITC) shall be treated as fully GST paid so as to avoid unnecessary litigation.