Ice cream topping crackle likely to attract 18 per cent GST on AAR ruling

The crackle sold to companies for use as toppings on ice creams may now be subject to a higher goods and services tax (GST) rate of 18 per cent, and not 12 per cent.

The Authority for Advance Rulings (AAR) has held that crackle sold to ice cream companies should not be categorised as sugar boiled confectionery but rather as an industrial input.

Although the AAR did not specify the applicable GST rate, experts anticipate that it will indeed be 18 per cent, contrary to the applicant’s request for a 12 per cent rate. This decision pertains to a product commonly known as NBS crackle, composed primarily of sugar but also containing ingredients like cashew nuts, butter and glucose.

Read more at : Business – Standard