Policy

Paratha vs roti: The hot GST debate

​Paratha is left out
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​Paratha is left out
Can't paratha be treated the same as roti, chapati or khakhra? That's one debate on the goods and service tax rates that refuses to subside.
​The debate: 18% vs 5%
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​The debate: 18% vs 5%
This time, the Gujarat Authority on Advance Rulings has said GST at 18% is chargeable on frozen paratha. Ready-to-eat roti, chapati and khakra are charged at 5%.
​Why paratha sticks out
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​Why paratha sticks out
These are the reasons given: 1) Paratha is not named under the harmonised system of nomenclature, or HSN, code used to classify products and apply tax rates 2) 'Composition' of paratha is different 3) Frozen parathas are 'not ready to eat'.
​Not defined under GST
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​Not defined under GST
Paratha is not a defined product under GST, which is why companies making ready-to-cook parathas have approached AARs saying it should be in the same 5% category as roti. AARs, however, have said otherwise and put the product in the 18% rate slab.
​Cooked paratha = different slab
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​Cooked paratha = different slab
And to make it more twisted: plain paratha served at a restaurant or a takeaway is charged 5% GST. The same as plain roti.
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