Bombay High Court To Decide GST Rate on Donuts and Cakes - 5% or 18%?

The Bombay High Court is hearing the plea by Mad Over Donuts (Himesh Foods) against an INR 100 crore GST demand from DGGI.

The dispute is whether donuts should be taxed at 5% under restaurant services or 18% as bakery products.

The petitioner argues that takeaway donuts qualify as a composite supply of services under the CGST Act and it falls under restaurant services.

The court has set the next hearing for March 24, with tax authorities required to file affidavits by March 17.

The DGGI assured the court that no coercive recovery action would be taken while the case is pending.