Parathas cannot be considered plain roti and will attract 18 per cent GST.

Bench: Presiding members Vivek Ranjan and Milind Torawane 

Recently, the Gujarat Appellate Authority for Advance Ruling (AAAR) ruled

that packed frozen parathas cannot be considered plain roti and will, therefore, attract 18 per cent Goods & Service Tax (GST).

The bench rejected an appeal filed by Vadilal Industries against the Authority for Advance Ruling ruling in June 2021.

The Gujarat Authority of Advance Ruling held that 18 per cent GST applied to the products of June 2021 Vadilal. Thus, an appeal was filed before the AAAR.

Vadilal said their parathas are similar to rotis or chapatis, which are subject to only 5% GST. In contrast, the AAAR noted the appellant's products need to be cooked before they can be consumed. Rotis, on the other hand, are ready to eat and do not require further processing before consumption. Specifically, the package instructions stated that 3-4 minutes of heating equates to the cooking of the parathas since their colour changes and they are ready to eat.

In response to Vadilal's claim that paratha was similar to roti or chapatti, the AAAR found only one common ingredient: wheat flour.