Roti to be taxed at rate of 5% while Pizza base to be taxed at rate of 18% GST: AAR

Roti to be taxed at rate of 5% while Pizza base to be taxed at rate of 18% GST: AAR Maharashtra Authority of Advance Ruling in matter of M/s. Signature International Foods India Pvt Ltd ruled out that : 1. The products such as plain chapatti, Tortilla, Tortilla Wraps, roti, Roti rolls , Wraps, Paratha and Paratha wraps are covered under Entry; No. 99 A of Schedule I and they would be liable to tax@ 5% (2.5 % each for CGST and MGST and 5 % for IGST). 2. The product such as Naan, Kulcha and Chalupa are not covered by the expression 'bread' as mentioned under Entry No. 97 of Exemption Notifications but they would be covered under residual entry 453 of schedule III of GST ACT and they would be liable for taxes @ 18 %( 9% CGST and 9% MGST ). However Pita Bread is covered by the expression 'bread' as mentioned under Entry No. 97 of Exemption Notifications. 3. The products like Corn Chips, Corn Taco and Corn , Taco Strips would be treated as 'wafer' under Entry No. 16 of Schedule III of Rate Notifications and it would be liable for taxes@ 18 %( 9% CGST and 9% MGST). 4. The product Pancakes supplied by the applicant would be treated as All Goods as mentioned under Entry No. 16 of Schedule III of Rate Notifications and it would be liable for taxes@ 18 %( 9% CGST and 9% MGST). 5. The product, Pizza Base supplied by the applicant would be treated as 'Pizza Bread' as mentioned under Entry No. 99 of Schedule/ of Rate Notifications and it would be liable for taxes@ 18 %( 9% CGST and 9% MGST).

Roti to be taxed at rate of 5% while Pizza base to be taxed at rate of 18% GST: AAR

The Extract of ruling is given below : Question 1:- "Whether on facts and circumstances of the case, the Unleavened Flatbreads be treated as 'Khakra, plain chapatti or roti under Entry; No. 99 A of Schedule/ of Notification No. 01/2017-Integrated Tax (Rate) dated 28 June 2017, Notification Number 1/2017-Central Tax (Rate), dated 28 June 2017 and Notification Number 1/2017-State Tax (Rate) No. MGST1017/ C.R. 104/Taxation-1, dated 29 June 2017 ( collectively referred to as the 'Rate Notifications') If not, whether on facts and circumstances of the case, the Unleavened Flatbreads be classified: (i) as 'bread' as mentioned under Entry; No. 97 of Notification Number 02 Number 2/2017/Integrated Tax (Rate), dated 28 June 2017, Notification Number 2/2017-Central Tax (Rate), dated 28 June 2017 and Notification Number 2/2017-State Tax (Rate) No. MGST1017/ C.R. 103(1)/Taxation-1, dated 29 June 2017 (collectively referred to as the 'Exemption Notifications'); or (ii) as Malt extract, food preparations of flour, groats, meal, starch or malt extract not containing coca or containing less than 40% by weight of coca calculated on a totally defatted basis, not elsewhere specified or included [other than preparations for Infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers' wares of heading 1905] on a totally defatted basis not elsewhere specified or included (other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers' wares of heading 1905) under Entry No. 13 of Schedule III of Rate Notification or (iv) Any other Schedule Entry; as per Rate Notification or Exemption Notification as your good office thinks fit Answer: - The Unleavened Flatbreads products such as plain chapatti, Tortilla, Tortilla Wraps, roti, Roti rolls , Wraps, Paratha and Paratha wraps are covered under Entry; No. 99 A of Schedule I and they would be liable to tax@ 5% (2.5 % each for CGST and MGST and 5 % for IGST). Question 2 :- "Whether on facts and circumstances 97 of the case, the Leavened Flatbreads be treated as 'as 'bread' as mentioned under Entry; No. 97 of Exemption Notifications If not, whether on facts and circumstances of the case, the Leavened Flatbreads be classified: (i) Pizza Bread as mentioned under Entry No. 99 of Schedule I of Rate Notifications; or (ii) as Malt extract, food preparations of flour, groats, meal, starch or malt extract not containing coca or containing less than 40% by weight of coca calculated on a totally defatted basis, not elsewhere specified or included (other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers' wares of heading 1905) on a totally defatted basis not elsewhere specified or included (other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers' wares of heading 1905) under Entry; No. 13 of Schedule Ill of Rate Notification or (i) Any other Schedule Entry as per Rate Notification or Exemption Notification as your good office thinks fit Answer :- The product Leavened Flatbreads stated in application such as Naan, Kulcha and Chalupa are not covered by the expression 'bread' as mentioned under Entry No. 97 of Exemption Notifications but they would be covered under residual entry 453 of schedule III of GST ACT and they would be liable for taxes @ 18 %( 9% CGST and 9% MGST ). However Pita Bread is covered by the expression 'bread' as mentioned under Entry No. 97 of Exemption Notifications. Question 3:- "Whether on facts and circumstances of the case, Corn Chips, Corn Taco and Com, Taco Strips supplied be treated as 'wafer' under Entry No. 16 of Schedule III of rate notifications If the same is not classifiable as 'wafer', whether on facts and circumstances of the case, the Corn Chips, Corn Taco and Corn Taco Strips be classified (i) as "Malt extract, food preparations of flour, groats, meal, starch or malt extract not containing coca or containing less than 40% by weight of coca calculated on a totally defatted basis, not elsewhere specified or included (other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers' wares of heading 1905]on a totally defatted basis not elsewhere specified or included (other than preparations for infants or young children, put up for retail sale and mixes and doughs for the preparation of bakers' wares of heading 1905)" under Entn; No. 13 of Schedule Ill of Rate Notification; or (ii) Any other Schedule Entry as per Rate Notification or Exemption Notification as your good office thinks fit Answer :- The products like Corn Chips, Corn Taco and Corn , Taco Strips would be treated as 'wafer' under Entry No. 16 of Schedule III of Rate Notifications and it would be liable for taxes@ 18 %( 9% CGST and 9% MGST ). Question 4:-"Whether on facts and circumstances of the case, Pancakes supplied be treated as All Goods i.e. Waffles and wafers other than coated with chocolate or containing chocolate; biscuits; Pastries and cakes (other than pizza bread, khakhra, plain chapatti or roti, Waffles and wafers coated with chocolate or containing chocolate, papad, bread) as mentioned under Entry No. 16 of Schedule III of Rate Notifications. If not, whether on facts and circumstances of the case, the Pancakes be classified any other Schedule Entry as per Rate Notification or Exemption Notification as your good office thinks fit. Answer--The product Pancakes supplied by the applicant would be treated as All Goods as mentioned under Entry No. 16 of Schedule III of Rate Notifications and it would be liable for taxes@ 18 %( 9% CGST and 9% MGST ). Question 5:- "Whether on facts and circumstances of the case, Pizza Base supplied be treated as 'Pizza Bread' as mentioned under Entry No. 99 of Schedule I of Rate Notifications. If not, whether on facts and circumstances of the case, the Pizza Base be classified any other Schedule Entry as per Rate Notification or Exemption Notification as your good office thinks fit Answer :-The product, Pizza Base supplied by the applicant would be treated as 'Pizza Bread' as mentioned under Entry No. 99 of Schedule/ of Rate Notifications and it would be liable for taxes@ 18 %( 9% CGST and 9% MGST ). Click here to download the ruling