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The Karnataka High Court on April 25 heard arguments in a pivotal tax classification dispute regarding the Goods and Services Tax (GST) treatment of donuts, cakes, and other bakery products.
The Congress on Saturday took a swipe at the government over its implementation of differential GST rates, saying that after popcorn, it is now the turn of donuts to get afflicted by “GSTitis”.
The Bombay High Court is set to hear the Rs 100 crore tax dispute involving Mad Over Donuts (MOD) on March 24, a case that could set a precedent for how restaurant and bakery services are classified under the Goods and Services Tax (GST).
The Bombay High Court will decide whether donuts and cakes should be subject to a 5% or 18% tax under the Goods and Services Tax (GST). The case comes after a plea by Himesh Foods Pvt Ltd, the parent company of Mad Over Donuts (MOD), challenging a show-cause notice issued by the Directorate General of GST Intelligence (DGGI).