MUMBAI: The Gujarat Bench of the Authority for Advance Ruling (AAR) has held that the Goods and Services Tax (GST) rate of 18% will be applicable in the case of parathas.
The decision went against the logic of the Ahmedabad-based manufacturer of branded parathas. Vadilal industry, that – as Bread HSN are subject to 5% GST under code 1905 – the same should apply to Parathas. Vadilal had said, “Chapatis, rotis (phulkas) and parathas are very similar to each other, as not only the method of preparation or cooking but also the mode of use and consumption is the same and the same for all such products.”
In June last year, TOI had put forward a similar judgment given by the Karnataka bench of the AAR, which broke the internet. The hashtag #HandsoffPorotta was trending then. Twitter.
In this case, the applicant Vadilal Industries submitted that it produces eight types of Parathas- the major ingredient in all being whole wheat flour. It can be 62% of the content in Malabar Paratha or 36% in Mixed Vegetable Paratha.
The Gujarat AAR Bench sought to differentiate between ready-to-eat meals such as ‘khakhra, plain chapati or roti’, which come under HSN code 1905 and attract a lower rate of 5%, and parathas which are heated are required and ‘ready’. Preparation of Two-Cook. The cooking instructions on the packets sold by Vadilal say, “Heat over medium heat for about 3-4 minutes.”
It is also said to add oil or butter during reheating for extra flavor and crunchiness, the AAR reported. It also differentiates between rotis and parathas based on the composition of wheat flour, which varies from 36% to 62% in the case of parathas.
The decision went against the logic of the Ahmedabad-based manufacturer of branded parathas. Vadilal industry, that – as Bread HSN are subject to 5% GST under code 1905 – the same should apply to Parathas. Vadilal had said, “Chapatis, rotis (phulkas) and parathas are very similar to each other, as not only the method of preparation or cooking but also the mode of use and consumption is the same and the same for all such products.”
In June last year, TOI had put forward a similar judgment given by the Karnataka bench of the AAR, which broke the internet. The hashtag #HandsoffPorotta was trending then. Twitter.
In this case, the applicant Vadilal Industries submitted that it produces eight types of Parathas- the major ingredient in all being whole wheat flour. It can be 62% of the content in Malabar Paratha or 36% in Mixed Vegetable Paratha.
The Gujarat AAR Bench sought to differentiate between ready-to-eat meals such as ‘khakhra, plain chapati or roti’, which come under HSN code 1905 and attract a lower rate of 5%, and parathas which are heated are required and ‘ready’. Preparation of Two-Cook. The cooking instructions on the packets sold by Vadilal say, “Heat over medium heat for about 3-4 minutes.”
It is also said to add oil or butter during reheating for extra flavor and crunchiness, the AAR reported. It also differentiates between rotis and parathas based on the composition of wheat flour, which varies from 36% to 62% in the case of parathas.
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