A recent GST ruling by the Karnataka bench judged Parotta on the pretext of being different from Roti and hence will attract GST of 18 %. ‘Hands Off Parota’ trends on Twitter.
Authority for Advance Rulings (Karnataka bench) in a recent GST ruling pointed fingers at India’s one of the most preferred flatbread for being different from the humble roti, hence the taxation. Plus, the authority is apparently agitated with the use of ‘roti’ as a generic term while it “can cover different types of Indian breads.”
The argument reportedly surfaced when a private food maker – ID Fresh Foods – based in Whitefield, approached AAR for a GST ruling on their whole-wheat and Malabar parottas. They pressed parotas must be described under the category of ‘Khakhara, plain chapati or roti,” but this did not bode well with thr AAR and they’re now slamming 18% on the essentially fried rotis.
The company in question makes a number of ready-to-cook items like Idli batter, parottas, curd, and panner. It must be noted that ‘roti,’ under the Entry 9AA of Schedule 1, is subjected to a lower GST of 5%.
In a statement, the Karnataka bench ruled that: “The products under heading 1905 (rotis) are already prepared or completely cooked products, they are ready-to-use food preparations. On the other hand, porotta need to be heated before consumption. On this ground, AAR held that porotta do not merit classification under heading 1905 and are not covered by Entry 99A,” Times of India notes.
Hands Off Parotta
As soon as the news came to the mainstream, people started talking about it on social media like twitter. On the micro-blogging platform especially, people were opinionated. Have a look at the particularly unhappy Twitter, about what they have to say about 18% GST on parottas:
It must be noted, however, the ruling is apparently for half-cooked frozen parotas sold by food makers. For the same served in restaurants it is still 5%.
(Cover image courtesy of @arunchekkan via Twitter)