Guwahati: After the Karnataka bench of Authority for Advance Rulings (AAR) ruled that 'Parotas' are not rotis and, therefore, can be taxed at higher 18% GST compared to 5% for Rotis because they need to be heated before consumption, Anand Mahindra took to Twitter to offer his two cents on the situation.
"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 categorization," Mahindra tweeted.
Mahindra's comment has come amid a raging controversy over the issue after the Karnataka court's order that came after a Bengaluru-based ready-to-cook food maker sought the authority for more clarification on GST rates for varieties of the Indian dish.
After Mahindra's post vent viral, Twitterati bombarded the post with comments sharing their own views on the issue. "18% GST" on Parotta 5% on Roti Next Meeting,(Prediction) Kulcha and Nan attracts 18% GST Additional Surcharge 10% for Stuffed Kulcha and Garlic Naan", wrote a Twitter user.
"Parothas should be charged 18%, And the butter on it should be an additional 28%. If its on disposable plate no additional tax ( gov favour ). If its on a proper plate at least 40% get", wrote another user, taking a dig.
Meanwhile, a company called iD Fresh Food contended that its products should be treated in the same way as khakhra, plain chapati, or roti under the law. Another user said, "How about puri or for that matter Amritsar's Chole Kulche? Which has Aloo in it. With this additional ingredient in it, the exclusivity of 28% may be fine".
"We have decided to appeal against the recent ruling by the Authority of Advance Ruling (AAR) Karnataka that 'parota' as classified under Chapter Heading 2106 is not khakhra, plain chapati, or roti, so 18 per cent of GST is applicable," said PC Musthafa, CEO and Co-founder, iD Fresh Food, in a statement.