The Kerala High Court stayed the order imposing 5% GST (Goods and Services Tax) on ‘Malabar Porota’ for next two months. A division bench of the High Court stayed the order of the single bench.
A writ appeal was filed by the State of Kerala on 20th May 2024 against the decision rendered by the Single bench of Justice Dinesh Kumar Singh on 2nd April 2024. With respect to the appeal filed by the State before the High Court, the division bench comprising Justices A.Muhamed Mustaque and S. Manu issued an interim order stated as follows:
“Issue notice to the first respondent by speed post.
There shall be a stay of operation of the impugned judgment for a period of two months.”
The Single bench ruled that Malabar ‘Parota’ should be classified as ‘bread’ and fall under Heading 1905 for taxation purposes. This decision goes against the earlier rulings of the Authority for Advance Ruling ( AAR ) and Appellate Authority for Advance Ruling ( AAAR ).
According to the single bench, both ‘Classic Malabar Parota’ and ‘Whole Wheat Malabar Parotta’ products should be taxed at the GST rate of 5% rather than 18%, as they share similarities with items listed under HSN code 1905, such as bread.
The next hearing is scheduled tentatively on 17th July 2024.
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