An ice cream parlour that sells already manufactured ice cream is treated as selling goods, not restaurant service, as CBIC clarified in Circular 164/20/2021-GST. Ice cream and edible ice under HSN 2105 moved from 18% to 5% on 22 September 2025, and because it is a goods supply the parlour can claim input tax credit. The bill should show scoops, cups, tubs or family packs, flavours, the HSN 2105 code, cones or toppings, and the FSSAI number.
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Ice cream, Belgian chocolate (double scoop in cup)
2105
2 NOS
180.00
360.00
5%
Ice cream family pack, vanilla, 1 litre
2105
1 NOS
350.00
350.00
5%
Kulfi stick, malai
2105
4 NOS
60.00
240.00
5%
Sundae, hot fudge (ice cream based)
2105
1 NOS
240.00
240.00
5%
Taxable value
₹1,190.00
GST (CGST + SGST, or IGST if inter-state)
₹59.50
Invoice total
₹1,249.50
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a ice cream parlour invoice needs
Pack size or serving unit
Scoop, cup, 500 ml tub and 1 litre family pack carry different prices. Printing the unit beside the flavour lets the customer check the price and lets you track stock by pack size.
Flavour and brand
Parlours often stock more than one brand. Recording the brand and flavour helps reconcile sales against the distributor's supplies and identify slow movers before they expire.
HSN 2105
Because the parlour sells goods, each line should carry HSN 2105 rather than a restaurant SAC. The code is what tells the return and your auditor that this is a goods supply with credit.
Toppings and cones
Waffle cones, chocolate sauce and nut toppings are charged extra in most parlours. Show them as add-on lines so the bill reconciles with the menu and with purchase records for those items.
Batch or manufacturing date for take-home packs
Family packs leave the freezer. Batch and date on the bill help trace a melted or spoilt pack to its delivery lot if a customer complains.
FSSAI licence number
A parlour handling frozen desserts needs an FSSAI licence or registration, and the number should be printed on every bill handed to customers.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
Circular 164/20/2021-GST explains that ice cream parlours sell already manufactured ice cream and do not cook or prepare food the way a restaurant does. Their supply is therefore one of goods, even though they offer seating and serve in cups. At the time the circular put the rate at 18%. From 22 September 2025, Notification 9/2025-Integrated Tax (Rate) lists ice cream and other edible ice under 2105 00 00 in Schedule I at 5%. The goods treatment remains, so parlours bill under HSN 2105 at 5%, not under the restaurant SAC.
Input tax credit is available
Because the 5% rate on ice cream is a goods rate without a no-credit condition, a parlour may claim input tax credit on purchases of ice cream from the distributor, freezers, rent and other inputs used in its business, subject to the usual conditions. That is a meaningful difference from a cafe charging 5% on restaurant service. Keep distributor invoices in order and match them with GSTR-2B every month, as credit on unmatched invoices can be denied.
Parlours that also cook
Some outlets make waffles, shakes and hot desserts on the premises. Where the parlour prepares food or drinks for consumption like a restaurant, those preparations can be restaurant service at 5% without credit, while plain scoops stay goods. A mixed outlet should map each menu item to goods or service, maintain separate sales heads, and apportion common credits under rules 42 and 43.
Composition and ice cream
Small parlours sometimes ask about composition. Composition has historically been unavailable to manufacturers of ice cream, and the rules for traders differ. A parlour that only resells manufactured ice cream should check the current eligibility conditions with its accountant before opting in, and remember that a composition dealer issues a bill of supply without tax.
Common billing mistakes
✕Billing ice cream under SAC 996331 as restaurant service instead of as goods under HSN 2105.
✕Continuing to charge 18% on ice cream after it moved to 5% from 22 September 2025.
✕Not claiming input tax credit on distributor purchases because the owner assumes the parlour is a restaurant.
✕Treating freshly made shakes and waffles as goods with credit when they are prepared like restaurant food.
✕Printing the parlour's FSSAI registration from a previous location after moving shops, so the number on bills does not match the premises.
Ice Cream Parlour GST invoice: FAQ
What is the GST rate on ice cream at a parlour?
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From 22 September 2025, ice cream under HSN 2105 is taxed at 5%. A parlour selling manufactured ice cream supplies goods, so it applies this goods rate.
Can an ice cream parlour claim input tax credit?
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Yes, for a goods supply at 5% there is no condition barring credit. The parlour can claim credit on eligible purchases, subject to normal conditions such as matching invoices and payment within 180 days.
Is a milkshake taxed as ice cream?
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A shake blended to order in the parlour is a prepared drink, which may be restaurant-type service rather than goods. Classify shakes separately from scoops and apply the treatment that fits how they are made.
What HSN should be printed on a kulfi?
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Kulfi is an edible ice preparation that falls under heading 2105 with ice cream, so use HSN 2105 at 5%.
Should take-home tubs be billed differently from scoops?
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No. Both are ice cream sold as goods under HSN 2105 at 5%. Show the pack size so the line is clear.