Extra slice of tax for pizza toppings! Here is why

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.

Also read/watch | Gloves come off as Amazon calls RIL-Future deal fraud in public notice

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!

Also read/watch | Startup Sizzle Fades: Paytm, Zomato, Nykaa, others flushed investors' money