18% GST ON PARATHA'S HELD VOID AB INITIO

18% GST ON PARATHA'S HELD VOID AB INITIO

5^TH OCTOBER, 2020

The Karnataka Appellate authority of advance ruling has held that 18% Goods and Service Tax, applicable on whole wheat paratha or Malabar Parotha is Void Ab initio. The Karnataka appellate authority comprising of Judicial Member, D P Nagendra Kumar and other Member, M S Srikar, said that the rule passed by AAR wherein 18 per cent GST applicable on the aforesaid product is void ab initio on the ground that it was vitiated by the process of suppression of material facts.

The Appellate Authority contended that the parathas are in ready to cook conditions. The Parathas have a range of life from 3-7 days.  The authority further contended that such products are not frozen products but only needs to be refrigerated to retain their freshness for a shelf life of 7 days.

Although the charging of 5% GST on the aforesaid product is still under consideration before the Authority