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Parathas Different From Rotis, To Attract 18% GST: Gujarat Appellate Authority

New Delhi: The Gujarat Appellate Authority of Advance Ruling (GAAR) has upheld the ruling of the AAR that said frozen parathas would attract 18 per cent GST. The two-member bench observed that parathas are different from plain chapati or roti and cannot be treated or covered under the same category.Also Read – Ordering Food Through Zomato, Swiggy To Become Costly Soon As Govt Panel Moots GST On Aggregators

The appellant is in the business of producing eight varieties of frozen parathas — Malabar Paratha, Mixed Vegetable Paratha, Onion Paratha, Methi Paratha, Aloo Paratha, Laccha Paratha, Mooli Paratha and Plain Paratha. The appellant sells parathas in packed condition that needs to be heated either using direct flame or a pan or microwave oven for that purpose for a couple of minutes the very least. The Gujarat Authority of Advance Ruling has ruled that the merit classification of parathas is at HSN 21069099 and has held that 18% GST is applicable. Also Read – 61 Per Cent Respondents Say Modi Becoming PM is Good For Gujarat, Says Opinion Poll

The ruling has given ammo to the opposition parties and their leaders to target the government. Senior Congrss leader and former Union Minister Kapil Sibal has directly questioned Finance Minister Nirmala Sitharaman Also Read – Cabinet Increases Cess on Luxury Cars And SUVs to 25 Per Cent

“18% GST on paratha baffles logic. The message: Eat chapatis or else pay more. Why tax what ordinary folk eat? Is the FM listening?”, asked Kapil Sibal


18% GST on paratha baffles logic

The message: Eat chapatis or else pay more
Why tax what ordinary folk eat ?

Is the FM listening ?

— Kapil Sibal (@KapilSibal) October 14, 2022

Delhi Chief Minister and Aam Aadmi Party Convenor Arvind Kejriwal has taken a step ahead and said even the British did not impose tax on food items.

“Even the British did not impose tax on food items. Today the biggest reason for inflation in the country is the high GST being levied by the central government. It should be reduced and people should get rid of inflation”, said Arvind Kejriwal

खाने पीने की चीज़ों पर तो अंग्रेजों ने भी टैक्स नहीं लगाया था। आज देश में महंगाई का सबसे बड़ा कारण केंद्र सरकार द्वारा लगाया जा रहा इतना ज़्यादा GST है। इसे कम करना चाहिए और लोगों को महंगाई से छुटकारा दिलवाना चाहिए। https://t.co/ib4B3VuM9m

— Arvind Kejriwal (@ArvindKejriwal) October 13, 2022

According to the appellate authority, end users cannot be determinative of the classification of the product and a number of factors are required to be considered. They said parathas are very different from plain chapatis or rotis, and the products have to be classified on their merits.

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