One more funny and strange judgement added in the list of comic judgement. I.e. Parotas are not rotis! Taxability of Parotas differ from Roti !
In recent GST AAR ruling, Karnataka Authority for Advance Rulings in the case of ID Fresh Food (India) Pvt Ltd (the Applicant) based in Bengaluru, distinguished the roti from parotas. AAR holds parotas are not roties and would be subject to GST at the rate of 18%. AAR differed from the view of the applicant, that parotas should be classified under the product description of ‘Khakhara, plain chapati or roti’ (Under heading 1905). Owing to Entry 99A, of Schedule 1 to GST notifications, rotis are subject to a lower rate of 5%.
Applicants question was whether preparation of whole wheat parota and malabar parota be classified under chapter heading 1905 attracting GST at the rate of 5%?
Applicant was of the veiw that (parotas should be classified under the product description of ‘Khakhara, plain chapati or roti’ (or to be more technical, under heading 1905). Owing to Entry 99A, of Schedule 1 to GST notifications, rotis are subject to a lower rate of 5%. However, AAR differed from applicants views on the basis of following facts:
Products khakhara, plain roti or chapati are completely cooked preparations which do not require any processing for human consumption and hence are ready to eat foods preparations, whereas parotas require further processing like heating etc. before human consumption !
Surely this judgement will give birth to more interesting nomenclature to parotas like hatti katti Roati !.