Amidst a hotly debated topic on GST on various types of flattened breads( Roti, Parota) on social media, Bengaluru based company ID Fresh said that it will appeal against a recent GST ruling of the Authority for Advance Rulings (Karnataka bench) which called for a distinction between Rotis and Parotas and subjected Parotas to a higher GST rate of 18%.
ID Fresh Food which sells various types of Idli dosa batters and ready to heat flattened breads ( Parotas) did a brisk business during the lockdown as the whole country stayed indoors. PC Musthafa, co-founder and CEO of ID Fresh Food said in a statement, “At ID Fresh Food, we are committed to follow the law of the land and work in the interest of the community. In today’s challenging times, we need - more than ever before - to build an environment that is conducive to recovery and growth. We have decided to appeal against the recent ruling by the Authority of Advance Ruling (AAR) Karnataka that ‘parota’ as classified under Chapter Heading 2106 is not khakhra, plain chapati, or roti, so 18% of Goods and Service Tax (GST) is applicable.”
The company also quoted a Maharashtra AAR ruling which noted that unleavened flatbreads such as plain chapatti, tortilla, roti, roti rolls, wraps, paratha and paratha wraps are covered under Entry No. 99 A of Schedule I and therefore they are liable to GST at 5%.
“Also, in its 2012 notification (FD 57 CSL 2012), under the Karnataka Value Added Tax Act, 2003, the Government had not made such distinction and reduced the tax payable for ready-to-cook chapati and parota to 5%. I’m hopeful that we will get this matter resolved soon so that our consumers can continue to enjoy healthy Indian foods at affordable prices,” Musthafa added.