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.


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