Parathas are different from 'Plain Chapatis', attracts 18% GST: AAAR [Read Order]

The Appellate Authority for Advance Ruling (AAAR), Gujarat, while upholding the ruling of the Gujarat AAR, has held that the parathas would attract 18% GST unlike Plain Chapatis.

The appellant, M/s Vadilal Industries, has submitted that they are producing eight varieties of Paratha which are Malabar Paratha, Mixed Vegetable Paratha, Onion Paratha, Methi Paratha, Alu Paratha, Laccha Paratha, Mooli Paratha and Plain Paratha; that the principal ingredient of all varieties of Paratha is wheat flour; the Parathas supplied and sold by them in packed condition are to be placed directly on pre-heated flat pan. The appellant further submitted that roti, chapatti which is unleavened bread of Indian origin like paratha, wheat flour is predominant material and therefore submitted that Paratha, having close resemblance of roti and chapatis would be chargeable to GST @5%.

The AAR held that 18% GST would be applicable to the product since that appellant's product i.e. Parathas are not ready for consumption product but requires 3-4 minutes of cooking as well as they are not akin to roti or chapattis which are primarily wheat flour product and HSN 1905 covers already prepared or cooked products whereas appellant's parathas requires 3-4 minutes cooking Heading 2106 covers food preparations not elsewhere specified or included' used directly or after processing such as cooking.

Upholding the order of the Gujarat AAR, the Appellate Authority comprising Central Member Mr. Vivek Ranjan and State Member Mr. Milind Torawane held that “the Parathas supplied by the appellant are different from Plain Chapatti or Roti and cannot be treated as or covered under the Category of Plain Chapatti or Roti and the appropriate classification of Parathas would be under Chapter heading 2106.”

To Read the full text of the Order CLICK HERE

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