CA NeWs Beta*: Parotta and roti are separate: Authority for Advance Rulings' Karnata bench hence different GST rates applicable to both

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Friday, June 12, 2020

Parotta and roti are separate: Authority for Advance Rulings' Karnata bench hence different GST rates applicable to both

If you like your parotta, you are not going to like what's coming.
As per a recent rule by the Authority for Advance Rulings' Karnata bench, parotta and roti are separate. Distinguishing between the two Indian varieties of shortbread, the GST ruling said that
unlike roti, parotta will be subjected to an increased 18 percent GST.
In what many are calling a bizarre ruling, the institution said that since "roti" was generic, not every flatbread could be considered a part of it.
The reason given for the higher GST on parotta? Ready-to eat parotta require to be heated. Rotis on the other hand are subjected to five percent GST.
According to Entry 99A in Schedule I of 2017 GST Notifications, five percent GST on sale of goods is only applicable to products classified under Tariff Headings of either 1905 or 2106 or are either roti, khakra or plain chappatti.
As per a reports, the ruling came in response to a Whitefield-based private food-makers' application to include parotta under the heading 1905 which includes rotis and khakras.
The ruling on the flatbread fell "flat" on foodies and parotta lovers on Twitter, many of whom lashed out at the AAR for the bizarre distinction. INC spokesperson Jaiveer Shergill called it 'Parantha tax terrorism' on Twitter. Yet others questioned the logic behind the decision as #HandsOffKerala trended on the microblogging site.
Decision to impose 18%GST on Parrotta/Parantha is Govt of India’s Marie-Antoinette “if people don’t don’t have bread let them eat cake” moment; when need is to provide bread & butter,finance ministry is taxing Parantha -Govt “Parantha tax terrorism” is act of stupidity & cruelty
— Jaiveer Shergill (@JaiveerShergill) June 12, 2020
Roti & Chapati - 5% GST
Parotta - 18% GST
Our tax authorities work in mysterious ways.
(h/t @qfint )
— Nitin Pai (@acorn) June 12, 2020
Classic and Whole Wheat Malabar "Parota" under Schedule III of GST Laws is taxable at 18% GST.
The government gave a very lame explanation that Porotta is taxed simply because it's not Roti.
The flawed logic shows the north south divide in their politics.#HandsOffPorotta
— Arya 🌹 (@RantingDosa) June 12, 2020
On Twitter, the issue soon took on a more regional angle as many claimed the ruling was discriminatory of people from Kerala where parotta is a staple. Some even called it "food fascism".
Six months ago, Rlway removed pazhampori,puttu,porotta frm railway menu and included alien foods like rajma chaval.
Now, they're going to impose 18%GST on porotta while roti, chapati still on 5% slab.
That's food fascism.#handsoffporotta pic.twitter.com/cg8s0LRjHH
— D🌹 (@worker_bee44) June 12, 2020
Wowww... So Chappatti and Rotis only 5% GST (essential item) while Kerala Porottas will carry 18% GST (luxury item).
What's next? Appam and Pazhampori having 28% GST?#HandsOffPorotta
— Advaid à´…à´¦്à´µൈà´¤് 🌹 (@Advaidism) June 12, 2020
According to new GST ruling,
Roti & Chapatti : 5% GST Tax
Porotta : 18% GST Tax
Kerala "Parota" is not "Roti" because unlike rotis which are ready to eat, Porotas need to be heated before consumption.
The HEIGHTS of Indian Bureaucracy. #HandsOffPorotta pic.twitter.com/5wC2ufiTAJ
— Advaid à´…à´¦്à´µൈà´¤് 🌹 (@Advaidism) June 12, 2020
Yet others claimed that even though they were not from Kerala or other southern states where parotta is popular, they loved the flatbread preparation and were outraged by the bizarre distinction. The message was clear - stay off our plates.
The single best example of why tax laws need to be simple.
Also, explains why so many different tax slabs under GST are a nuisance.
If the taxman has to decide between what is parantha and what is roti, god help us. https://t.co/xQpaFrtwIT
— शिक्षित बेरोज़गार (@kaul_vivek) June 12, 2020
And of course, there were memes and jokes

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