{"id":230872,"date":"2020-06-13T16:14:51","date_gmt":"2020-06-13T10:44:51","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=230872"},"modified":"2020-06-26T13:33:43","modified_gmt":"2020-06-26T08:03:43","slug":"18-gst-to-be-levied-on-parotas-as-they-do-not-fall-under-the-category-of-ready-to-eat-food-preparations-like-roti-and-khakra","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/06\/13\/18-gst-to-be-levied-on-parotas-as-they-do-not-fall-under-the-category-of-ready-to-eat-food-preparations-like-roti-and-khakra\/","title":{"rendered":"18% GST to be levied on \u2018parotas\u2019 as they do not fall under the category of \u2018ready to eat food preparations\u2019 like \u2018roti\u2019 and \u2018khakra\u2019"},"content":{"rendered":"<p class=\"p1\" style=\"text-align: justify;\"><span class=\"s1\"><b>Karnataka Authority of Advance Ruling (Goods and Services Tax):<span class=\"Apple-converted-space\">\u00a0 <\/span><\/b>In the instant application the question was that whether the preparation of \u201cWhole Wheat Parota\u201d and \u201cMalabar Parota\u201d<span class=\"Apple-converted-space\">\u00a0 <\/span>can attract GST at the rate of 5% under Chapter Heading 1905, the AAR (GST Department) comprising of Ravi Prasad M.P., (Additional Commissioner of Commercial Taxes) and Mashhood- ur- Rehman Farooqui (Joint Commissioner of Central Tax), held that the product \u201cparota\u201d requires further processing for human consumption and is completely different from products like \u2018roti\u2019, \u2018chapatti\u2019 etc.; furthermore \u2018parota\u2019 also falls under the category of \u2018food preparations not elsewhere specified or included\u2019, thus the product can be classified under Chapter Heading 2106, upon which 18% GST will be applicable.<\/span><\/p>\n<p class=\"p1\" style=\"text-align: justify;\"><span class=\"s1\">The applicant stated that the \u2018parota\u2019 is available in ambient and frozen form, with a shelf life of 3-7 days. The ingredients for the product include refined flour, RO purified water, edible vegetable oil, fat and salt. After adding the said ingredients, the product is then subjected to heat on a pan for making it available for consumption. With this description, the applicant contended that the product should be classified under Chapter Heading 1905 under the description of \u201cKhakhra, Plain Chapatti and Roti\u201d. <\/span><\/p>\n<p class=\"p1\" style=\"text-align: justify;\"><span class=\"s1\">Perusing the contention and the nature of the product in question, the AAR observed that under <\/span><span class=\"s2\">Rule 3(c) of the General Rules of Interpretation<i>\u00a0<\/i>under the Customs Tariff Act, 1975, where goods are not classifiable under appropriate heading then, the\u00a0product is to be classified under the heading which occurs last\u00a0in the numerical order<i>\u00a0<\/i>among those headings which equally merit consideration. Since, Heading 2106 occurs last in the numeric order and the impugned product does not fall under any category enumerated in Rule 3(a) and Rule 3(b) General Rules of Interpretation<i>\u00a0<\/i>under the Customs Tariff Act, 1975, thus the product \u2018parota\u2019 shall fall under Heading 2106 by the virtue of aforementioned Rule 3(c). It was further observed that unlike \u2018khakhra\u2019, \u2018roti\u2019 and \u2018plain chapatti\u2019 which are completely cooked preparations requiring no processing before human consumption and are thus \u2018ready to eat food preparations\u2019; the same cannot be said for \u2018parota\u2019 which is to be heated before consumption.<\/span><span class=\"s1\">[ ID Fresh Food (India) Pvt. Ltd., <a href=\"http:\/\/www.scconline.com\/DocumentLink\/6n6Dk3ce\"><b>2020 SCC OnLine Kar AAR-GST 1<\/b> <\/a>, decided on 22-05-2020]<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Karnataka Authority of Advance Ruling (Goods and Services Tax):\u00a0 In the instant application the question was that whether the preparation of \u201cWhole <\/p>\n","protected":false},"author":8808,"featured_media":218013,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31468,3],"tags":[6241,41923,41924,41925],"class_list":["post-230872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aar","category-casebriefs","tag-gst","tag-parota","tag-ready-to-eat","tag-roti"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - 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