In re Mohammed Sajid Mohammed Sharif Kakuwala (GST AAR Gujarat)
The applicant, an unregistered person under GST, proposed to establish and operate a multi-product food business in Ahmedabad. The business would involve preparation and sale of freshly made food and beverage items including bhajiya, khaman, sandwiches, pizza, juices, falooda, milkshakes, ice cream and other items. The operations would be carried out through the applicant’s own network of retail outlets. All items would be freshly prepared either at the same premises or at a manufacturing unit and supplied through the outlets. Seating facilities would be available, offering both dine-in and takeaway options. The business would function as a composite food service establishment and not as a standalone ice cream parlour.
The applicant proposed to manufacture ice cream at the same premises or a manufacturing unit. The ice cream would either be sold directly through its outlets to customers or used as an ingredient in other preparations such as falooda, juices and milkshakes. In view of GST rate rationalisation post 22.09.2025, the applicant reframed its questions before the Authority for Advance Ruling (AAR), Gujarat.
The first question was whether supply of ice cream manufactured at the same premises or manufacturing unit and sold through outlets (B2C) would qualify as “restaurant services” taxable at 5% without input tax credit (ITC), and whether treatment would differ for B2B transactions. The second question was whether, if not covered as restaurant service, such supply would be classified as supply of goods by an ice cream parlour attracting 5% GST under Notification No. 9/2025-CT (Rate), and what rate would apply if a separate GST registration was obtained for the manufacturing unit supplying on B2B and B2C basis.
