A court in India is hearing a case that decides whether doughnuts should attract 5 or 18 per cent tax, in a case that could have significant implications for India's restaurant and bakery industries.
At the core of the dispute is whether doughnuts should be taxed as part of restaurant services, which carry a five per cent charge under India’s Goods and Services Tax (GST), or as standalone bakery products, which fall under the 18 per cent GST bracket.