Home Business Frozen parathas 'quite different' from rotis, to attract 18% GST (tax)

Frozen parathas ‘quite different’ from rotis, to attract 18% GST (tax)

Packed, frozen paratha ‘very different’ from roti/chapati; Attracts 18% tax

If you often prefer frozen parathas over chapatis or rotis, you will have to shell out more money. While a chapati attracts 5 per cent Goods and Services Tax (GST), frozen paratha attracts 18 per cent GST.

A decision by the Gujarat Appellate Authority for Advance Ruling (GAAR) has differentiated between the two commonly consumed Indian breads, explaining why they fall in different GST slabs. Indian Express,

Ahmedabad-based Vadilal Industries Ltd pronounced the verdict on September 15 after appealing against the authority’s earlier order for Advance Ruling (AAR) on the supply of its various varieties of parathas.

The company presented that it manufactures a total of eight types of parathas including Mixed Vegetables, Malabar and Saada, where the primary ingredient for each is wheat flour. Hence, it claimed that they should fall in the same GST slab as rotis, the report said.

However, the GAAR upheld an order of the Gujarat Authority of Advance Ruling that “the parathas supplied by the appellant are different from plain chapati or roti and cannot be treated under the category of plain chapati or roti and are subject to proper classification.” Parathas would be under chapter heading 2106.

The June order by GAAR highlighted that packaged or frozen parathas should be cooked for 3-4 minutes until golden brown. It is also stated that the composition of wheat flour varies from 36 per cent to 62 per cent in different parathas manufactured by the company.

In 2020, the Karnataka Bench of the Authority of Advance Rulings told a Bengaluru-based food manufacturer that its Malabar Paratha and Whole Wheat Parota with a shelf life of three to seven days were not ready to eat and hence would attract 18 per cent. GST.

RELATED ARTICLES

Forex reserves rise for third straight week to $550 billion

<!-- -->For the week ended November 18, India's reserves stood at $547.25 billion. (File)Mumbai: India's foreign exchange reserves rose for the third consecutive...

Deadline for 30% cap on UPI transactions by payments firms extended

<!-- -->UPI facilitates peer-to-peer online money transfers through mobile apps. (File)Mumbai: India has decided to extend the deadline for capping share of digital...

NSE launches new Nifty Bharat Bond Index

<!-- -->The total assets under management of all India Bond ETFs has now grown to over Rs 52,000 crore.New Delhi: NSE Indices, a subsidiary...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Brazil’s Gabriel Jesus And Alex Telles Out Of World Cup Due To Injuries | football news

Gabriel Jesus out of FIFA World Cup 2022© AFPGabriel Jesus and Alex Telles have been ruled out of the rest of the World Cup...

England Sense Lead Despite Three Pakistan Centurions In First Test | cricket news

England found ways to take wickets and sensed a good lead despite hundreds from three Pakistan players on the third day of the opening...

“Keep Phones Away From Kids And Let Them Play To Avoid Obesity”: Kapil Dev | cricket news

Former Indian cricketer Kapil Dev recently shared that obesity in children can be tackled by keeping the phone away from them and letting them...

Mitchell Starc Continues Love Affair With Clean Bowling Batters. Watch | cricket news

AUS vs WI, 1st Test: Glimpse of Mitchell Starc's delivery to dismiss Da Silva© TwitterAustralia continue to dominate the ongoing first Test against West...

Recent Comments