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Oct 14, 2022

Eating parathas will be expensive from now on! Have to pay 18 percent GST, know details

From now on, eating parathas in hotel restaurants will be expensive. Because 18% GST has been levied on parathas.

    On one hand inflation is increasing day by day and on the other hand Gujarat Appellate Authority has given an important verdict. That means 18% GST will be levied on parathas in hotel restaurants from now on. The Gujarat Appellate Authority has dismissed the petition challenging the GAAAR order by the paratha traders.

    Parathas are not simple breads: GAAAR

    According to GAAAR, parathas are not simple breads. Hence 18% GST will be levied on paratha . Paratha is different from plain roti or plain roti. Paratha cannot be classified as a plain roti. Paratha and roti cannot be compared.' Importantly, the petitioner raised an objection regarding the 18% GST on parathas . The petitioner termed paratha as roti and demanded lower GST rate.

    Let us tell you that the Uniform Goods and Services Tax (GST) system has completed five years in the country in July this year, but its intricacies are yet to end. Controversies continue to surface over the implementation and notification of GST. Then there is something similar in the different GST rates on Roti and Paratha .

    18 percent GST on paratha and 5 percent GST on roti

    If you want to eat paratha (frozen), now you have to pay 18 percent GST on it. There will be 5 percent GST when roti is eaten. In the past too , questions were raised regarding GST on Rotli- Paratha . The companies involved in this industry then say that wheat flour is the basic material for making both, so the same GST should be applied to it. Vadilal Industries also said that they make 8 types of parathas . In which mainly flour is used. Malabar paratha has 62 percent flour content and mixed vegetable paratha has 36 percent.

    But Gujarat GST Authority said that rotli is ready to eat, while paratha is ready to cook. The tax authorities clearly say that paratha is completely different from roti. You can eat roti without butter or ghee, but parathas are not made without it. Since Ghee Chopdeli Rotli or Paratha falls in a separate category, it is imperative to tax it at the rate of 18 percent.

    There is a similar difference between milk and flavored milk

    Similar to rotis and parathas, the GST controversy is over milk and flavored or flavored milk. The GST authorities of Gujarat have levied 12 percent GST on flavored milk, while no tax has been levied on milk.

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