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Govt Apply 18% GST on Frozen Parottas: Here’s Why Explained

Pronami Chetia
Pronami Chetia

Our favourite food item parotta (roti) has recently grabbed the attention of limelight amid the corona crisis. The government has recently decided to apply 18 per cent GST on frozen parottas that are preserved, sealed and packed. However, the fresh parottas that are served in the restaurants will be exempted from 18% GST. Frozen parottas are "consumed by the class which could afford to pay taxes", government sources said on Saturday.

As per reports, the ordinary or any parotta served by the restaurant would be taxed at a GST rate of  5 per cent just like the plain roti, said government sources. However, social media users debated the government's move to put frozen parotta on a higher bracket than roti under the goods and services tax or GST a day before this announcement.

"It may be noted that frozen parota is preserved, sealed packed, branded and is usually sold at higher prices. It is not a staple item and is consumed by the class which could afford to pay taxes. Even items like cheaper biscuits, pastries, cakes, etc,, attract GST at the rate of 18%. Frozen food would be more comparable to such item. Frozen foods cannot be comparable to plain roti or plain parota served in restaurants or taken as staple food, or eaten by poor on a day-to-day basis (sic)," said government sources.

"Such frozen and preserved parota is not a like product when compared to plain roti, khakra, etc. Also, this order does not decide the rate of ordinary plain parota. The ordinary or any parota, served for consumption by a restaurant, or a takeaway, would attract 5% GST rate just like plain roti," said the government sources.

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