GST  & Composite Scheme for Ice cream industry- To Be or Not To be

Dec 11, 2018

Husain Dalwai, Member of Parliament of India from Maharashtra state is going raise certain questions this winter session in parliament to the Government regarding the 18% GST levied on the ice cream manufacturers. He is of the view whether government is aware that small scale ice cream manufacturers with annual turnover of Rs. 30-40 lakhs have not been included in composite scheme for GST. Because of exclusion of these manufacturers from composite scheme, they are forced to pay taxes at 18 % GST as opposed to 1% VAT earlier. And if so, has Government made any petition to Ministry of Finance regarding this issue and what positive steps will be taken to provide relief to the manufacturers. 

In lieu of the above concern, with high reverence to Ashish Nahar, Director-Fun India Dairy and Joint Secretary  of Indian Ice Cream Manufacturing Association  (IICMA) together with Firoz Haider Naqvi- Director, Frozen Desserts and Ice Cream Manufacturers Association of India (FDICMAI), have put all their efforts to standardize this discrepancy. They have been following very closely with all their will and contacts in government departments to drive the query home and find appropriate solution.


Naqvi has also been raising questions on different platforms of ice cream industry. He along with Kuldeep Jindal, Shanky Takeja, Iqbal Singh and Sushil Chhabra of Pun Ice Cream Association (PICA) met with GST council member, Manpreet Singh Badal, Minister of Finance, Punjab. In the meeting Naqvi raised the concerned topic of high GST and composition scheme worrying the ice cream industry since the onset of GST, on which Badal assured that both the points will be addressed in GST Council to lower GST and reconsider composition scheme.

This indicates that discussing these crucial points in the parliament is a significant achievement for IICMA and the efforts of the industry has been fruitful this far.

Finally, Ice cream industry has strong personalities representing them in the parliament to question the government as to why Ice cream industry is charges at 18% GST the same way tobacco and pan masala are charged. Tobacco and pan masala carry statutory warnings of being dangerous and harmful to human life. So why is ice cream treated at same level with hazardous and life threatening substances, while consumption of Ice cream does not imposed any danger to human life and still ice cream bears inequitable attitude of taxes. In fact, made from dairy item, consumption of Ice cream has qualitative ingredients like milk and nuts that undoubtedly benefit consumers.

With the constructive steps taken by IICMA & FDICMAI to extend all the help it can for ice cream industry and its members, it’s high time to watch what decision the government takes to support the industry.





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