Feb 17, 2021
HC gives 3 months to GST Council to include ice cream under composition scheme
The Delhi High Court has given 3 months’ time to GST Council to reconsider and include ice cream that was expelled from the list of manufacturers eligible in the composition scheme.
It has been a long battle the ice cream manufacturers (organized as well as unorganized and MSME) have been fighting on all fronts running from pillar to post-filing petition in nearly 6 High Courts of the country.
A Division Bench comprising of Justices Rajiv Sahai Endlaw and Sanjeev Narula has finally brought the petition on the front desk of the court and asked legitimate reason from GST Council for barring ice cream as a milk product from composition scheme. The 14th March has been set as a final date by Delhi High Court for the final hearing.
There were many petitions filed by Small Scale Ice cream Manufacturer’s Associations (SSIMA) and other associations and since then they have been knocking on the doors of government offices to get themselves heard.
The High Court enquired GST Council whether they have conducted any study or research on finding tax effect of benefit being extended under composition scheme to which the government officials replied that no such study has been conducted so far.
Over few telephonic interviews, Ice Cream Times spoke to the stalwarts of the ice cream manufacturers on the current affair of the decision of the Delhi High Court. The following are the excerpts taken from them:
Sudhir Shah, the new president of IICMA expressed his gladness over the decision taken by High Court. He said, “We have been patiently waiting for the verdict, which now seems possible. We have stood by the government’s decision, and hope to hear the verdict in our favour”.
Vijay Malhotra, MD Deepika Ice cream and Secretary of All India Small Scale Ice Cream Manufacturer’s Association (SSIMA), has gone through a great amount of racking on the steps of government depts for bringing MSME ice cream sector under composition scheme. His long-borne efforts since three years are about to bear fruits ultimately. He asserts, “I have fought tooth-n-nail. But now GST Council has to consider us and the High Court to give us the due justice-making us the winner”.
Taking few comments from Vivek Mishra, MD Moonberry Ice cream and VP All India Small Scale Ice Cream Manufacturer’s Association (SSIMA) cited, “Since 4 years we have suffered to save our businesses. Many small-scale manufacturers have closed their production. We have already won the case halfway and the rest will be on 14th March, which I am very much positive about. We shall knock the doors of the Supreme Court if the government is not ready to consider us. Ice cream has been demeaned by ranking it with paan masala, ghutka, and tobacco products which are hazardous to life while ice cream is full of nutrients. But soon we will win the case”.
Mukesh Kothari, MD, Manmohak Ice cream, Gujarat & VP of All India Small Scale Ice Cream Manufacturer’s Association (SSIMA) said “Our hearing was on 22nd January, but GST Council wanted some more time to decide. Earlier they had refrained to submit any reply to our petition. But this time our lawyer was strict enough to put forth our case strongly that milk and milk products are ranged from 5% to 12% then why is ice cream treated at 18%? To this GST Council has no answer. After the news from HC, we feel that the court will definitely do the justice to us”.
Adding to the above views, Kuldeep Jindal, MD Dairy Toy Ice Cream, VP SSIMA & President Pun Ice Cream Association Punjab, too has expressed his eagerness to hear the court giving out favourable verdict. “The amount of sweats that we have put in, it’s almost confirmed that we are in a win-win position. The court has asked the GST Council why ice cream sector was not given a composition scheme, and GST Council has not responded to any queries raised by the authorities. Now, either they give us tax reduction or include us in composition scheme”.
Firoz H. Naqvi Chief Editor, Ice Cream Times & Industry Expert expresses his views too. According to him, “This issue of 18% GST on Ice cream has gained a lot of momentum and the forerunners in this matter have struggled for around 4 years to get the small-scale manufacturers under the composition scheme. Their hard-earned efforts are about to be heard and we all await the judgment to be announced on 14th March 2021 in the favour of ice cream manufacturers”.
The entire ice cream industry now awaits the decision of the GST Council to take up the aspect at first priority in the coming court hearing, keeping in the view that the ice cream season is at the onset.