IIMCA wary of future prospects amid year long losses, pitches for reduction in GST for the dessert's comeback

AHMEDABAD, India, Feb. 27, 2021 /PRNewswire/ — The Covid-19 pandemic has created a scene of confusion regarding the consumption of ice-cream and other frozen desserts. In order to cope up with last year’s losses and ensure that ice cream is back on every customer’s plate, the ice cream and dessert companies’ representatives have requested the government to reduce the GST rate of ice-cream from 18% to 12% from the upcoming financial year.

“The three crucial months of summer is the only period when we have to achieve the entire years’ sales. Such has been the impact of the pandemic and lockdown that the entire financial year 2020-21 has been a net loss on the part of the industry. Even the January 2021 sales figure is a meagre 30% of the January 2020 figure when the pandemic was just making slow strides in the country” said the President of IICMA Shri Sudhir Shah who is strongly pitching the demand for the reduction in GST of small and medium scale ice cream manufacturers.

Indian Ice Cream Manufacturer’s Association is a national level non-profit organisation representing most of the small and medium scale ice cream manufacturers, majority of whom are currently on the brink of bankruptcy.

As per IICMA Secretary Aashish Nahar, ” though the dairy products are either at NIL, 5% or 12% GST slab, ice cream on the ground of being kept out of the composite scheme for GST collection is charged 18% GST.  We therefore, have requested the finance minister to keep the GST slab for ice-cream at par with other dairy products”. Interestingly, and providing much relief to the sector The Delhi High Court in its verdict has given 3 months’ time to the GST council to reconsider its decision of excluding ice cream from the composition scheme, he added.

There is no substantial proof of any linkage or co-relation between the consumption of ice-cream and rate of transmission of covid-19 by any medical research agency in any part of the world. Yet, the customers are keeping a close watch on their consumption habits as precautionary measure because of the common cold and flu symptoms associated with COVID, said the owner of a small chain of ice cream unit on condition of anonymity.

While most of the manufactures of  FMCG have picked up sales post lockdown, ice cream was the most affected industry as its sales didn’t revive throughout the year, said the treasurer Pradeep G. Pai. Even the future course correction is not warranted given the fact that various state governments are implementing day and night curfew to control the second wave of Covid-19. The companies are going to continue making losses in the wake of current uncertainty, he added.

Dropping sales figure and last year’s financial losses could make it a difficult task for the come back of the industry. Keeping in view the IIMCA demand, it’s all up to the government to see whether it really hopes to see the people enjoy the delicacy without burning another hole in their pockets.

About Indian Ice cream Manufacturer’s Association (IICMA)

The Indian Ice cream Manufacturer’s Association was founded in 2011 as the National Association of Ice cream manufacturers. It is a professional non-profit organization representing the ice cream and frozen desserts Industry in India.


Media Contact : Samrat A. Upadhyay, [email protected], +91-73833-54764, Secretary General, IICMA, Indian Ice cream Manufacturer’s Association

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