HospitalityBiz India
Hotels FoodService Operations Ministry Associations Equipment Editorial HR Technology Technology Advisory Board Community
Follow us on Facebook Follow us on Twitter instagram
    Home > F&B Overview > F&B

Fresh parota at restaurant attracts 5% GST, tax rate jumps to 18% if sold frozen

Monday, June 22, 2020, 15:45 Hrs  [IST]
HBI Staff | Hyderabad

 According to ET,Plain rotis or parotas (types of Indian flatbreads) is treated as a staple diet of common people and attract 5% tax, but they will attract an 18% levy if sold in the frozen form, a senior government official said.

“Plain roti or parota served in a restaurant or provided in takeaway get same treatment in [tax] rates and attract 5% GST [Goods and Services Tax] only,” the person said requesting anonymity.

He was commenting on a decision by Authority for Advance Ruling (AAR), Karnataka that frozen and preserved wheat parotas and malabar parotas with a shelf life of three to seven days are not plain ‘rotis’ but a distinct product that would attract 18% GST.

The finance ministry declined comments on this matter.

The official said frozen parota is preserved, sealed packed and branded. It is sold at a premium and it is not a staple item. It is consumed by the affluent class that could afford to pay tax.

“Even items like cheaper biscuits, pastries, cakes, etc., also 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 day-to-day basis,” the official said.

The AAR ruling is area and product specific. A poor person staple food like plain roti cannot be treated at par with a packed product or a frozen parota, he said.

This order does not decide the tax rate of ordinary plain parota. “The ordinary or any parota, served for consumption by a restaurant, or a take away, would attract 5% GST rate just like plain roti,” he added.

“The AAR (Karnataka) held that such frozen and preserved parota would not be entitled to concessional rate as available to roti (plain roti, khakra attracts 5% GST rate). It has been held that frozen and preserved parota would attract GST at the rate of 18%,” he said.

The matter was earlier discussed in the 37th meeting of the GST Council. The Council did not recommend to reduce GST rate on “frozen” and “preserved” parota for the reasoning that these parota are sold by organised sector, he added.

(Source ET)

Print News Email News Back
Bookmark to Add to NewsvineNewsvine Bookmark with Digg ItDigg
Add RSS to Add to Google Add to My Yahoo! Subscribe with Bloglines Subscribe
* Name :    
* Email :    
* Message :  
»  Hotel Mercure Hyderabad KCP, Banjara hills launches Terrace, A Roof Top Bar & Restaurant
»  NRAI launches its Pune Chapter to strengthen and unite the Restaurant Fraternity in Western Region
»  FHRAI Appeals For GST Rationalization For The Hospitality Sector
»  54 Praangan, The Indian Specialty Restaurant at Indore Marriott launches its new menu
»  Blue Tiger offering frozen food; Planning to Expand in Tier 2 & 3 Cities
»  The Leela Palaces, Hotels and Resorts opens Megu, Japanese restaurant at The Leela Palace New Delhi
»  Meraki Hospitality presents an all-new Indian Casual Dining Restaurant, Bharat Bhavan
»  Curefoods acquires majority stake in Frozen Bottle to become India’s largest online dessert company
»  Curefoods acquires majority stake in Frozen Bottle to become India’s largest online dessert company
»  Raise tourism GST concerns with GOM: FAITH
»  Pan-Asian restaurant, Pink Wasabi opens in Chandigarh
»  Hyatt Regency Chennai reopens Italian Restaurant, Focaccia
»  Fairmont Jaipur Appoints Nisha Kumari as the Head Chef of its recently launched Barbeque Restaurant ‘Zia’
»  Hospitality Industry seeks tax relief, Infrastructure status and financial assistance from Budget 2022-23
»  Restaurant owners write to Delhi CM, LG for lifting of restrictions
»  Fairmont Jaipur introduces a brand-new barbeque restaurant ‘Zia’
»  Restaurant India Investment & Development Summit 2021 scheduled on December 17
»  Salud adds Three New fresh and classy variants to its RTD portfolio
»  India Reopens To Fully Vaccinated Foreign Travellers After 18 Months
»  Adonia Hospitality raises USD 1 million seed round from Pepperfry founders, aims to expand in packaged and frozen food from November 2021
  The Indian Institute of Architects (IIA) Natcon 2020 virtual event concludes successfully
  Winners of The Park Elle Décor Student Contest felicitated at Indian Design ID 2020
Receive the best of Hospitality content in your mailbox.
Weekly e-Newsletter
Events Calendar

© Copyright 2016 Saffron Synergies Pvt Ltd