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Sunday, April 11, 2021

Government levies 18% GST on ready-to-eat ‘parota’; Twitteratis react with memes and say ‘It’s a Mad Mad World’

In a recent Good and Services Tax (GST) ruling, the Karnataka bench of Authority of Advance Ruling (AAR) has differentiated between khakhra, plain chapati or roti and the parota by stating that ready-to-eat parota needs to be heated or further processed for human consumption. Hence, it will be subjected to 18 per cent GST.

It all started when Bengaluru-based ID Fresh Foods, a FMCG company involved in preparation and supply of ready-to-cook items like idli and dosa batter, parota and chapatis, had approached the AAR, requesting whether preparation of whole wheat parota and Malabar parota can be classified under Chapter 1905 attracting 5 percent GST.

However, the Karnataka bench was of the view that the parota is not covered by any other heading under the HSN system and added, “The products khakhra, plain chapatti and roti are completely cooked preparations, do not require any processing for human consumption and hence are ready to eat food preparations, whereas the impugned product (whole wheat Parotas and Malabar Parotas) are not only different from the said khakhras, plain chapatti or roti but also are not like products in common parlance as well as in the respect of essential nature of the product. These products also require further processing for human consumption.”

However, soon after the decision, Roti and Parota started trending on social media and netizens ended up joking on social media, saying they’ll opt for the humble roti in future.

Check out the latest social media memes:

https://twitter.com/Chaotic_mind999/status/1271326853517635589

 

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