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Anand Mahindra’s Parota Tweet Highlights Oddity of GST Classifications

Anand Mahindra's Parota Tweet Highlights Oddity of GST Classifications

Industrialist Anand Mahindra is a regular on Twitter, where he has 7.8 million followers.

New Delhi:

Industrialist Anand Mahindra tweeted today about a recent Goods and Services Tax (GST) order which states that parotas cannot be put in the same food category as roti, both of which are similarly prepared flat breads and a staple of most Indian meals.

The Twitter regular, who has more than 7 million followers, wondered if the alienation of the parota from the roti family was “worrying” enough for India, which is facing so many challenges right now.

“With all the other challenges the country is facing, it makes you wonder if we should be worrying about an existential crisis for the ‘Parota’. In any case, given Indian jugaad skills, I’m pretty sure there will be a new breed of ‘Parotis’ that will challenge any categorisation!” he tweeted.

The ruling was given on a plea by ID Fresh Foods, a Bengaluru-based company making and supplying semi-prepared foods, and states that “the parotas are not readily consumable (ready to eat), but need to be heated before consumption”.

The Karnataka bench of the Authority for Advance Rulings held that the parota could not be categoried under Chapter 1905 “Khakra, plain chapatti or roti” as these products were ready-to-eat, unlike the applicant’s products – whole wheat parota and Malabar parota (made from refined flour) with a shelf life of three to five days.

The GST on roti is 5 per cent, while the tax on parota is 18 per cent. Some products currently classified under Category 1905 – same as roti – are cakes, pastries, biscuits and breads. The Authority for Advance Rulings retains their classification as they are “completely cooked and ready for consumption”.

ID Fresh Foods had sought a ruling on the GST rate applicable to some items in its range of food items, including parotas, idli and dosa batter, curd and paneer.

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