Packaged Frozen Paratha To Attract 18% GST, Rules Gujarat Gujarat Appellate Authority for Advance Ruling

Packaged frozen ‘Paratha’ is not ‘roti or chapatti’ as it requires further cooking before consumption and despite wheat flour being the ‘main thread’ other ingredients are used in making parathas, says an order from the Gujarat Appellate Authority for Advance Ruling. Such parathas, whether called Malabar, Mixed Vegetable, Onion, Methi, Alu, Laccha, Mooli or Plain, contain ingredients such as margarine, salt, emulsifier, oil, potato, peas, cauliflower, coriander powder, bread improver and water, except wheat flour. , which is “very different” from regular roti or chapatti and therefore does not qualify for a 5 percent goods and services tax (GST), the ruling said.

The percentage of wheat flour used by Vadilal Industries, which the AAAR had approached, in the eight types of paratha manufactured and supplied by the company ranges from 36-62 percent while the ingredient for regular roti or chapatti is wheat flour, apart from water. Furthermore, rotis can be consumed directly, but the parathas manufactured by the company must be cooked before consumption, it added.

Also read: ‘An insult’: Spanish daily criticized for using snake charmer to portray India’s economic growth story

Ahmedabad-based Vadilal Industries had approached the AAAR against the June 2021 order of the Gujarat-Authority for Advance Ruling (AAR), noting that parathas sold by the company are not like Khakhra, regular chapatti or roti , which are ready for consumer goods and therefore decided that an 18 percent GST should be levied on such foods.

In a similar ruling, in 2020, in the case of Bengaluru-based ID Fresh Foods, AAR’s Karnataka bank had ruled that ‘frozen parotas’ must be further processed for consumption and therefore be charged 18 percent GST. Also, the Kerala bank of the AAR, ruling in the case of Modern Food Enterprises in 2021, said that frozen ‘parota’ should be classified under the 18 percent GST tax bracket.

“The Parathas supplied by Appellant (Vadilal Industries) are different from ordinary roti or chapatti and cannot be treated as or fall under the category of ordinary roti or chapatti,” AAAR’s Gujarat Bank ruled on Sept. 15, 2022, noting that such items must be charged 18 percent GST.

Also read: FD with Rs 10 lakh life insurance coverage: THIS bank offers 7.1 percent interest on a 3-year fixed deposit

KPMG tax partner Abhishek Jain said disputes over the classification of goods have been routine in various tax laws since time immemorial and are a pain point for businesses. In order to understand the correct classification, various principles are evaluated such as substance over form, technical literature of the product, understanding in common parlance, etc.

“While AARs have provided clarity on various classifications and disputes since the beginning of GST, the rulings sometimes differ from one state to another. The need in the present day is to establish a central AAR to settle such conflicts. and ensure uniform applicability across the nation, as is the vision of the GST law,” added Jain.

Source link
Zee News

One thought on “Packaged Frozen Paratha To Attract 18% GST, Rules Gujarat Gujarat Appellate Authority for Advance Ruling

  1. Hey, honestly your site is coming along :-), but I had a question – it’s a bit slow. Have you thought about using a different host like propel? It’d help your visitors stick around longer = more profit long term anyway. There’s a decent review on it by this guy who uses gtmetrix to test different hosting providers: and the whole video has a bunch of gold in it, worth checking out.

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous post Taali Taali: Peppy track from the Sonakshi Sinha and Huma Qureshi starrer ‘Double XL’ out now – Watch
Next post COMEDK UGCET 2022 Round 2 Counseling Schedule Released On