A non-finicky eater couldn’t care less if he or she is having rotis or parotas for dinner. After all, they are a kind of Indian bread, typically dunked into gravy or even savoured with grilled or fried food such as kebabs. But, in the realm of Goods and Service Tax (GST), there can be a huge chasm.
In a recent GST ruling, Authority for Advance Rulings (Karnataka bench) distinguished between the two, holding that parotas would be subject to a higher GST rate of 18%. AAR differed from the view of the applicant, a private food manufacturing company based in Whitefield, that parotas should be classified under the product description of ‘Khakhara, plain chapati or roti’ (or to be more technical, under heading 1905). Owing to Entry 99A, of Schedule 1 to GST notifications, rotis are subject to a lower rate of 5%.