Confusion cleared! Papad, irrespective of shape, is exempt from GST, says CBIC

Papad, by whatever name known, is exempt from the GST and the tax rate does not vary based on its shape, the CBIC has clarified.

The clarification by the Central Board of Indirect Taxes and Customs (CBIC) came after industrialist Harsh Goenka tweeted that round shaped papad is exempt from Goods and Services Tax whereas a square papad attracts the levy.

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"Did you know that a round papad is exempt from GST and a square papad attracts GST? Can anyone suggest a good chartered accountant who can make me understand the logic?" Goenka, chairman of RPG Enterprises, tweeted on Tuesday.

"Papad, by whatever name known, is exempt from GST vide Entry No. 96 of GST notification No.2/2017-CT(R). This entry does not distinguish based on the shape of papad. This notification is available at cbic.Gov.In," the CBIC said in a late night tweet, which quoted Goenka's tweet.

GST, which subsumed over a dozen local levies, like excise duty, service tax and VAT, was rolled out on July 1, 2017.