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K'taka HC stays GST demand against Mad Over Donuts
Business Standard
|April 29, 2025
Court halts coercive action amid tax dispute on doughnut, bakery product classification
Should a doughnut or any other bakery product sold by Mad Over Donuts be treated as a restaurant service and charged 5 per cent GST? Or should it be taxed 18 per cent GST by not classifying doughnut chains as restaurants at all?
The Karnataka High Court (HC) will ponder over it and take a call in the next few days as it stayed a goods and services tax (GST) demand of over ₹50 crore against the donut outlet on Friday.
Food items sold outside a restaurant setting invite 18 per cent GST, while those served in restaurants are charged 5 per cent GST.
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