No recovery proceedings on donuts GST dispute, says Bombay High Court

The court also allowed the petitioner to seek a stay in case it receives any recovery notice from the revenue department

In a case that could decide whether donut and bakery chains should be categorised as restaurant services paying 5 per cent goods and services tax (GST) or bakery products sold by these outlets that should cough up 18 per cent GST, the Bombay High Court has said that no coercive action should be taken against the petitioner and the parent company of Mad Over Donuts — Himesh Foods Pvt Ltd.

 

The court on Monday also allowed the petitioner to seek a stay in case it receives any recovery notice from the revenue department.

 

"The petitioner is always free to approach