Paratha GST: The major tax difference with rotis and why

Updated : Sep 09, 2021 16:10
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Editorji News Desk

Parathas are PARATHAS and rotis are... rotis! The government's formula for food economics looks like the tax on your food is directly proportional to the demand of your taste buds. More the food is delicious, more would be the taxes.

The Gujarat bench of Authority of Advance Ruling (AAR) has recently stated that parathas are different from rotis and should attract an 18% goods and service tax (GST).

The ruling comes as an Ahmedabad-based branded paratha manufacturer had asked for the same GST rate for paranthas as for rotis, 5%. But the AAR said that the products like plain roti or khakhra that attract 5% GST are already prepared or pre-cooked and do not require the customer to undertake any further process, unlike parathas that may require heating.

A Karnataka Bench had, last year, pronounced the same.

Even dosa, idli, etc sold in powdered form as 'ready-to-cook' are taxable at 18%, even though the GST rate is 5% if they are sold as 'batter'. However, it is a standard global practice that branded products and seal packed food items attract higher taxation. There is no GST on milk but tetra packed milk is sold at 5% GST and condensed milk at 12% GST.

GSTTaxFood

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