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Gujarat AAR rules parathas are not ready-to-eat, puts them under 18% GST

Gujarat AAR rules parathas are not ready-to-eat, puts them under 18% GST

The controversy over the goods and services tax (GST) rate on food products refuses to die. Now, the Gujarat-based authority of advance rulings (AAR) has ruled that 'parathas' would attract 18 per cent GST.

The applicant, Vadilal Industries, sought to know whether various kinds of 'parathas' supplied by them would attract five per cent GST in line with 'khakhra', plain chapati or 'roti'. To buttress its contention, the company gave definition of the word 'paratha' from various English dictionaries and Wikipedia, as it is not defined in the GST laws and rules under them.


For instance it said in Merriam Webster Dictionary, Paratha is described as 'An unleavened Indian wheat bread that is usually fried on a griddle.'

The authority, however, said 'khakhra', plain chapati or 'roti' are cooked preparations and do not require any processing for human consumption and hence are ready-to-eat food preparations. On the other hand, 'paratha' supplied by the company is not only different from them but also requires further processing for human consumption.

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