Ice creams sold by a parlour or such outlets will attract 18 percent Goods and Services Tax (GST), the CBIC said on Wednesday.

In two sets of circulars, the Central Board of Indirect Taxes and Customs (CBIC) clarified on issues raised by trade and industry on rates changes related to 21 goods and services, the decision of which was taken at the 45th GST Council meeting on September 17.

With regard to ice cream parlours, the CBIC said such places sell already manufactured ice cream and do not have the character of a restaurant.

"Ice-cream parlors do not engage in any form of cooking at any stage, whereas, restaurant service involves the aspect of cooking/preparing during the course of providing service," it said.

It clarified that their activity entails supply of ice cream as goods (a manufactured item) and not as a service, even if certain ingredients of service are present, adding this would attract GST at the rate of 18 percent.