Ready-to-eat parotas are not rotis and will attract 18% GST: AAR

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“The products khakhra, plain chapatti and roti are completely cooked preparations, do not require any processing for human consumption and hence are ready to eat food preparations, whereas the impugned product (whole wheat Parotas and Malabar Parotas) are not only different from the said khakhras, plain chapatti or roti but also are not like products in common parlance as well as in the respect of essential nature of the product. These products also require further processing for human consumption,” the AAR said.

The AAR in its ruling observed that parota does not have any specific entry in Customs Tariff Act or GST tariff. 5 per cent GST is applicable on products subject to fulfilment of conditions that they are classified under heading 1905 or 2106, and they must be either khakhra, plain chapatti or roti, while ‘parota’ falls under heading 2106, it is neither khakhra, plain chapatti or roti, it said.

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Heading 2106 under the Harmonised Commodity Description and Coding System includes the preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk etc) for human consumption, provided they are not covered by any other heading of the nomenclature. The bench was of the view that the parota are not covered by any other heading and also need to be processed for human consumption. Heading 1905 covers bread, pastry, cakes etc, which are completely cooked foods and ready for consumption.