Chhattisgarh High Court Urges GST Council to Reevaluate Exclusion of Small-Scale Ice Cream Manufacturers

Chhattisgarh HC directs GST Council to reconsider excluding small-scale ice cream makers from composition scheme. Ice cream not deemed luxury, GST rate questioned.

The Chhattisgarh High Court has intervened in a significant taxation matter, directing the GST Council to reconsider its decision to exclude small-scale ice cream manufacturers from the Composition Scheme. In a recent order dated April 1, Justice Rakesh Mohan Pandey emphasized the need for taxation laws to uphold the principles of equality under Article 14 of the Constitution.

Justice Pandey remarked, "Ice cream is being widely consumed by the people of India. It cannot be termed a luxurious item. The Council ought to have taken into consideration the socio-economic effect as mentioned in the Constitution."

The case was brought before the court by the Small Scale Ice Cream Manufacturer Association, challenging the GST Council's decision. The Association argued that ice cream should not be included in the negative list of items ineligible for the Composition Scheme, as it is not a luxury item and is widely consumed across the country.

In response to the plea, the court directed the GST Council to reconsider the exclusion of Small-Scale Manufacturers of Ice Cream from the Composition Scheme. Justice Pandey emphasized that taxation laws should take into account the socio-political implications, and a decision should be made within three months.