NEW DELHI: What is the difference between a roti and a Paratha? Apart from the taste, it is 18 per cent GST that can be imposed on Parotas (or Parathas) because these need to be heated before consumption.
Mahindra Group Chairman Anand Mahindra took to Twitter on Friday after the Karnataka bench of Authority for Advance Rulings (AAR) ruled recently that ‘Parotas’ are not rotis and, therefore, can be taxed at higher 18 per cent GST compared to 5 per cent for rotis because they need to be heated before consumption.
“With all the other challenges the country is facing, it makes you wonder if we should be worrying about an existential crisis for the ‘Parota.’ In any case, given Indian jugaad skills, I’m pretty sure there will be a new breed of ‘Parotis’ that will challenge any categorization,” Mahindra tweeted.
The Karnataka bench’s order comes after a Bengaluru-based ready-to-cook food maker sought the authority for more clarification on GST rates for variants of parotas.
As the post went viral, Twitterati flooded the social media with their reactions.
The company called iD Fresh Food contended that its products should be treated in the same way as khakhra, plain chapati or roti under the law.
iD Fresh Food in a statement on Friday said it has decided to appeal further on this matter.
“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 per cent of GST is applicable,” said PC Musthafa, CEO and Co-founder, iD Fresh Food.