Is Paratha ready-to-cook or ready-to-eat? Check why Advance Ruling Authority levied 18% GST on frozen or packet paratha

A buzz has been sparked across the country after Gujarat bench of Advance Ruling Authority has levied 18 per cent GST on ready-to-cook paratha, separating it from the category of roti, chapati, and khakra, which is considered as ready-to-eat products. 

The authority has said in its order that only roti, khakhra and chapati are included in the list of 5 percent HSN code of GST, and paratha is not considered in that list, hence due to which 18 percent GST should be levied on it.

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In its order, the Advance Ruling Authority has clarified that there is a difference between ready-to-cook food and 'ready-to-eat food, so roti, chapati and khakhra has been kept in the category of 5 per cent GST but frozen paratha or packet paratha comes in to ready to cook category, and hence it should attract 18 per cent GST.

In this regard, if a paratha is served to you in a restaurant, then it will be considered as a service of the restaurant and 5 per cent GST will be charged on the paratha, however, a packet paratha or frozen paratha will be considered as a commodity, and it will attract 18 per cent GST

Paratha is not defined in the category of GST, so the packet food makers had approached the Advance Ruling Authority and requested that Paratha should also be kept in the category of roti khakhra and chapati. 

The ruling authority had also passed an order to keep paratha in the category of 18 percent against the category of five percent.

The GST Council and the government have not clarified the issue, but experts believe that these orders of the Advance Ruling Authority will have an impact in many states and the investigating officers may also link old cases with 18 per cent GST, in the coming days.

An 18 per cent of GST will be levied on packaged or frozen paratha till the air around the same is cleared, till then paratha served for consumption by a restaurant or takeaway will attract 5 per cent GST.