18% GST On Ready-To-Eat Parathas, Kejriwal Says “Even British Did Not Impose Tax On Food Items”

“Today the biggest reason for inflation in the country is the high GST being levied by the central government”: Kejriwal

New Delhi: The Gujarat Appellate Authority of Advance Ruling (AAAR), on October 13 upheld the ruling of AAR. They have approved imposing 18% GST on ready-to-eat parathas. The two-member bench of Vivek Ranjan and Milind Torawane observed that Parathas and Plain Rotis are different from each other. Parathas cannot be covered under the category of Plain Rotis or Chapati. The chapati, however, attracts only 5% GST.

The appellate authority’s decision basically affirmed a June 2021 ruling by Gujarat’s Authority for Advance Ruling, which stated that packaged parathas should be cooked for 3–4 minutes, or until golden brown on both sides and that the paratha’s wheat content might range from 36% to 62%.

The most recent decision differs from a 2018 judgment of Maharashtra’s AAR. The judgment stated that different varieties of Indian breads go by different names and that classification should not only be determined by nomenclature. When it went before the Gujarat appellate body, Vadilal cited this.

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In the most recent decision, Ahmedabad-based Vadilal had appealed against an earlier AAR order for supplies of its eight kinds of paratha, including plain, Malabar, mixed vegetable, onion, methi, aloo, and laccha. The authority stated in a decision dated September 15 that “The parathas supplied by the appellant are different from plain chapati or roti and cannot be considered as or covered under the category of simple chapati or roti and acceptable classification of parathas would be under Chapter heading 2106.”

Reacting to GAAAR’s verdict, Delhi Chief Minister Arvind Kejriwal said that “Even the British did not impose a tax on food items.”

The AAP convener added, “Today the biggest reason for inflation in the country is the high GST being levied by the central government. It should be reduced and people should get rid of inflation.”

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