18% GST on frozen parottas: government sources explain why


The parotta vs roti affair sparked strong reactions from social media users.

New Delhi:

Ordinary parotta or any other parotta served by a restaurant for eating or takeout would be taxed at 5% GST, just like ordinary roti, government sources said one day after social media users debated. the government’s decision to put frozen parotta on a slice higher than roti under the goods and services tax or GST.

The 18% GST would therefore apply to frozen parottas that are kept, sealed and packaged, and not to fresh parottas served in restaurants. Frozen parottas are “consumed by the class who could afford to pay taxes,” government sources said on Saturday.

“It can be noted that the frozen parote is kept, sealed, branded and is generally sold at higher prices. It is not a basic item and is consumed by the class who could afford to pay Even items like cheaper cookies, pastries, cakes, etc. attract GST at 18% Frozen food would be more comparable to such item. Frozen food cannot be compared to roasts nature or parota nature served in restaurants or taken as a staple food, or consumed by the poor day by day (sic) from day to day, “government sources said.

Bengaluru-based food manufacturer informed by special court – Karnataka Bench of the Advance Ruling Authority – that its products, whole wheat parotta and Malabar parotta have a shelf life of three at seven days, were not ready for consumption. because they had to be heated before being consumed, which means they will continue to be taxed at 18 percent.

“… such a frozen and preserved parote is not a similar product compared to plain roti, khakra, etc. Furthermore, this ordinance does not determine the rate of the ordinary ordinary parote. The ordinary or any other quota , served for consumption by a restaurant, or to take away, would attract a GST rate of 5%, just like ordinary rotis, “government sources said.

Government sources have pointed out that it is common practice worldwide to tax processed or packaged foods at a higher rate, citing examples such as tetra-packaged and condensed milk.

The case had drawn the reactions of users of social media, including the industrialist Anand Mahindra. #HandsOfPorotta was one of the main trends on Twitter on Sunday.

Some people have alleged that the different tax brackets are an example of “cultural racism”, many claiming that roti is mainly consumed in northern India and parotta in the south, while others have simply stated that ‘It was just a question of taxing the products in the right categories and such claims. should be avoided.


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