Business
Processed and packaged food items are subjected to higher tax under GST.
Updated : Jun 13, 2020, 05:11 PM IST | Edited by : Arijit Saha
The Authority for Advance Ruling (AAR)~s decision to levy 18% GST on paratha or parota in packaged form has angered restaurants.
The AAR decided that an 18% GST will be levied on wheat packaged parathas and malabar parathas which are sold in frozen packs.
Government sources close to Zee News stated that the decision for imposing 18% GST on frozen packed paranthas is not up for debate as they are branded packs which are sold at a high price. Moreover, since the paranthas are frozen, it increases the shelf life to 3-7 days.
Currently, restaurants are being charged 5% GST because the paranthas are freshly cooked instead of being frozen or preserved for people to take-away or eat during dinner.
Processed and packaged food items are subjected to higher tax. Just like there is no GST on milk but if it is sold in a tetra pack 5% GST is charged, and 12% GST if it sold in condensed form.
Moreover, even biscuit packets, pastry, and cake which is made of wheat, also attract 18% GST.