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Govt. steps in to defend ruling passed by AAR after backlash from public.

Social Media debate started right after the judgement passed by AAR, Karnataka that classified frozen and preserved parota with a shelf life of three-seven days as a distinct product from roti and taxed it @ 18% GST as compared to 5% GST on roti.

The ruling defending a higher rate of GST on the parota or paratha had inspired memes and jokes on social media with people virtually launching a 'justice for parota' campaign.

The matter has arisen because of ruling passed by AAR, Karnataka in the case of M/s ID Fresh (India) Pvt. Ltd. Social media took no time to trend #HandsOffMyParotta over the Internet and the government was forced to step in with an explaination.

Sources in the government tried to cool the debate after the AAR said that all Indian breads cannot be categorised as rotis (a generic name for Indian flatbread) and the ready-to-eat parotas, that need to be heated before consumption, would be subjected to higher tax level of 18 per cent GST.

The government explained saying that the frozen parota, which is preserved, sealed, branded and is usually sold at higher prices cannot be considered as a staple food for poor, consumed on a regular basis. It is rather consumed by a class that could afford to pay taxes, the sources said.

Sources said, "It's not a staple item and is consumed by a class which could afford to pay taxes. And that is why, the ruling of 18 per cent GST on parota."

Sources also said that levying higher tax rates was a standard worldwide practice where processed or packaged food are taxed at a higher rate.

Since the ruling had led to a widespread fear that all the parota or malabar parota may start costing more, the government clarified that those eating out in restaurants or the "tiffin centres" will not be impacted as fresh flatbread or rotis or any parota, served for consumption by a restaurant, or takeaways will continue to attract 5 per cent GST rate just like the plain roti.

To present an example of how taxes on different products vary, the government said, "Milk under the GST regime is tax-free, but tetra packed milk is taxed at 5 per cent and condensed milk is taxed at 12 per cent. That is the differentiation the public has to make between rotis and parota served at restaurants or are frozen, packaged and sold in branded form by companies."

"Poor do not buy frozen food items. Students and working youth depend on restaurants and takeaway eateries. The GST on them remains 5 per cent. The frozen stuff is popular among a segment which can pay taxes. Mass consumption items like biscuits, pastries, cakes, etc attract GST at the rate of 18 per cent," a govt official said.

Government's explanation justifying levy of higher rate of GST on Parathas/ Parotas is not convincing. Even the Rotis and Chapathis sold in prepacked condition have to be heated before consumption.. A Parota purchased in a Restaurant as a take away (parcel) also needs heating up before consumption. This being so how is it different from other pre packed Parotas.

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