Covid-19: Karnataka CM Yediyurappa’s home office shut after staff’s relative tests positive
- Friday | 19th June, 2020
"Parathas Not Same As Rotis:" Ruling Backs 18% GST On Parathas
- | Saturday | 13th June, 2020
Are parathas different from rotis under Goods and Services Tax (GST) laws? According to a ruling by the Karnataka bench of the Authority for Advance Rulings, parathas are not rotis and therefore can be taxed at a higher GST rate of 18 per cent compared to 5 per cent for rotis. A Bengaluru-based food manufacturer had sought clarity on whether parathas can be classified in the same category as khakhara, plain chapati or roti, which would mean lower tax. In its ruling, the Authority of Advance Rulings distinguished between parathas and rotis, holding that parathas will continue to be taxed at the rate of 18 per cent under the indirect tax regime.
Bengaluru: Are parathas different from rotis under Goods and Services Tax (GST) laws? According to a ruling by the Karnataka bench of the Authority for Advance Rulings, parathas are not rotis and therefore can be taxed at a higher GST rate of 18 per cent compared to 5 per cent for rotis. A Bengaluru-based food manufacturer had sought clarity on whether parathas can be classified in the same category as khakhara, plain chapati or roti, which would mean lower tax.
In its ruling, the Authority of Advance Rulings distinguished between parathas and rotis, holding that parathas will continue to be taxed at the rate of 18 per cent under the indirect tax regime. iD Fresh Food, a manufacturer of ready-to-cook food products, had demanded a ruling on whether its products such as Malabar parathas and whole-wheat parathas fall under the same category as roti, which draws a GST rate of 5 per cent.
The company supplies the two products - which have a shelf life of 3-7 days - to distributors, retailers and other operators in the food services segment within the country as well as overseas. It contends that its products should be treated in the same way as khakhra, plain chapati or roti under the law.
According to the authority, khakra, plain chapatti or roti are prepared or completely-cooked products, so they fall in the category of ready-to-use food products under the Customs Tariff Act, 1975. But parathas need to be heated before consumption and cannot be placed in the same category, said the AAR.
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