It's taxing to figure out the taxes for a pizza and here is why, there are different taxes depending how what part you want to buy of pizza and where you want to eat it.
A pizza sold and eaten within a restaurant attracts 5% GST, while a pizza delivered at home attracts 18% GST. Now if you wanted to make this pizza at home it gets even more complicated. The pizza base attracts a 5% GST but pizza toppings is a different ball game, as per Haryana appellate authority for advance ruling (AAAR) you have to pay 18% tax on the same.
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But why? Well to set the GST rate one of three 'tests' are considered -common parlance test, end use test or ingredients test. In the case of pizza topping it was attracting 5% initially same as cheese but the ruling observed that the 'ingredients test' shows it has a substantial portion of oil as well and thus Pizza topping would merit classification as 'food preparation' attracting 18% GST.
All in all may be cheaper to eat the pizza out than make it at home!
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