The Authority of Advance Ruling (AAR) of Karnataka , recently announced that Parantha and Plain Roti cannot be classified as the same thing , therefore Paranthas will have 18% GST imposed on them.
As uncanny as it may appear the differentiation between Parantha and Plain Roti has been made , as the former one shall be purchased only by paying higher tax on it . All this thing came into existence when a Bangalore based , ready to cook meal maker acquired for clarity on the GST rates as imposed on breads , which includes Roti , Naan , Parantha or Parota. As per the company , their Malabar Paranthas and Whole Wheat Paranthas, which come under the category of frozen or preserved food , should be taxed the same way as Plain Roti/ Chapati.
AAR declined their argument as they believed that Plain Roti / Chapati are already pre-cooked and there isn’t really any requirement of effort from the customer’s side , whereas , Paranthas or Parotas are a different story. As per AAR , products can be charged 5% GST only when they satisfy the following 2 conditions :
1. The proudcts should be classified under the Tariff Headings of either 1905 or 2106.
2. The products must be Khakhra, Plain Chapati or Roti.
Though in this case the company is satisfying the first condition but unfortunately it doesn’t fall amongst neither Khakhra nor Chapati .
The petitioner company has decided to file an appeal against this GST ruling . Meanwhile as this news broke out in the media , various social media platforms were flooded with memes on the same. Many discussions took place on the matter , even the debate on the correct pronunciation as Parantha or Parota took place.