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Wheat has found its place in the Indian platter in the form of dishes made from the wheat flour a.k.a Atta like Poori, Parantha, Roti etc. Each part of India has a different taste bud and this has resulted in different types of Rotis, Pooris and Paranthas in different cooking styles throughout the country from North to South and East to West. ID Fresh Foods, Bengaluruis acompany involved in supply of ready-to-cook items like idli and dosa batter, parotta and chapattis. The company approached the AAR(Authority for Advance Rulings) regarding whetherthe base preparation of whole wheat parotta and Malabar parotta can be classified under Chapter 1905 attracting 5 percent GST under the present GST regime under which Roti currently falls. The Karnataka bench however opined that the parotta is not covered under any heading under the HSN (Harmonised System of Nomenclature) system and also need to be processed for further human consumption. After this ruling by the AAR trended online in India about the higher rate of Goods and Services Tax (GST) on the paratha, memes and jokes on social media began flooding hilariously with people seeking ‘justice for parotta’. The current article sheds light into the entire storyline of this hilarious yet grave situation.

As per the Second Advance Estimates for 2019-20, the total foodgrain production in the country is estimated to be 291.95 million tonnes which is higher by 6.74 million tonnes than the production of foodgrain of 285.21 million tonnes achieved during 2018-19. The production during 2019-20 is higher by 26.20 million tonnes than the previous five years’ (2013-14 to 2017-18) average production of food grains. Production of wheat during 2019-20 is estimated at a record 106.21 million tonnes. These figures suggest that India is on its way of achieving self sufficiency in food grains and the wheat production has been bumper in the past few years. Wheat is one of the staple food crops in many South East Asian countries as well as in India especially in the northern and western parts. Wheat has found its place in the Indian platter in the form of dishes made from the wheat flour a.k.a Atta like Poori, Parantha, Roti etc. Each part of India has a different taste bud and this has resulted in different types of Rotis, Pooris and Paranthas in different cooking styles throughout the country from North to South and East to West.

 What are Roti, Parantha and Parotta?

Roti also known as chapati in many parts of the country is a round flatbread native to the Indian subcontinent made of wheat flour, known as atta, and water, later combined into a soft dough. Its defining trait is that it is unleavened where as Naan and Kulcha in Indian cuisine are yeast-leavened breads. Roti, Naan and Kulcha are a staple accompaniment to other foods mostly curries. Parathas are of the popular unleavened flatbreads

 

of the Indian Subcontinent, made by baking or cooking  wheat dough on a tava. Parotta is a layered flatbread, made from maida flour, popular in Southern parts of India especially in Kerala primarily, Tamilnadu,Karnataka Maharashtra and the countries of United Arab Emirates, Sri Lanka etc. The different variants of parotta include Coin porotta, Malabari porotta, Berotta, etc. Anissa Helou states in her book ‘Feast: Food of the Islamic World’ (2018) that scallion pancakes were originally made by the indigenous Uighur people of China’s Xinjiang province which might have travelled to India through the ancient Silk Route passed.

 

What exactly had transpired in Roti Vs Paratha and the GST ploy in it?

ID Fresh Foods, Bengaluru is acompany involved in supply of ready-to-cook items like idli and dosa batter, parotta and chapattis. The company approached the AAR (Authority for Advance Rulings) regarding whether the base preparation of whole wheat parotta and Malabar parotta can be classified under Chapter 1905 attracting 5 percent GST under the present GST regime under which Roti currently falls. The Karnataka bench however opined that the parotta is not covered under any heading under the HSN (Harmonised System of Nomenclature) system and also need to be processed for further human consumption. Hence, it would be charged under heading 2106, covering foods like cakes, pastry that are completely cooked foods and are ready for consumption. In an article dated 16 June,2020 in The Indian Express, it was stated that  the processed and value added products like the whole wheat Parottas and Malabar Parottas are  very different from the khakhras, plain chapattis or rotis and they also require further processing for human consumption. This was one of the arguments made by the AAR. The AAR’s ruling is not about roti or paratha, rather frozen and packed parathas, which are sold as a ready to eat option at a higher price. Therefore, it cannot be compared to roti which falls under 5 per cent GST category and so 18 per cent GST can be levied on the item.

 

The Straight Point regarding GST on processed food

The food items which are essential and unprocessed aren’t charged under the GST regime. However, processed food products attract higher rates of GST viz; 5 per cent, 12 per cent, or 18 per cent depending on their nature. Under the Harmonised Commodity Description and Coding System, heading 1905, pizza bread, khakhra, plain chapati or roti, rusks, toasted bread have been classified in one category, levying a 5 per cent GST on each of these. No GST has been levied on milk but if sold in a tetra pack, invites 5 per cent GST and 12 per cent GST sold in condensed form. Biscuit packets, pastry, and cakes made of wheat, also attracts 18 per cent GST. Hence, it can be concluded that processed and packaged food items attract higher rates of GST depending on their branding criterion and the category under which they have been placed. Thereby inducing a higher price payment from the customers which in turn results into a permanent pinch to their pockets.

 

Conclusion

 

After this ruling by the AAR trended online in India about the higher rate of Goods and Services Tax (GST) on the paratha, memes and jokes on social media began flooding hilariously with people seeking ‘justice for parotta’. People opined that they will opt for the humble roti in future, saying that parathas were just for the richer. Twitter blazed with several such tweets including one from the industrialist Anand Mahindra citing that given Indian jugaad skills, there will be a new breed of `Parotis` that will challenge any categorization. Last but not the least, the choice of Roti over Parantha or Parotta or vice versa in all the combinations is highly a personalized one but the higher GST rate on the favorite breakfast and street food of Indians is surely going to pinch our pockets harder in times to come.

 

REFERENCES

 

Anissa,H.(2018). Feast: Food of the Islamic World. Harper Collins Publishers

Ministry of Agriculture and Farmers Welfare.(2020).Second Advance Estimates of Production of Foodgrains, Oilseeds and other Commercial Crops for 2019-20. Government of India

Magazine, A.(2020,June 16). Explained: Why parotta gets charged a higher GST than roti. The Indian Express. https://indianexpress.com/article/ explained/explained-why-parota-gets-charged-a-higher-gst-than-roti-6456901/.

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Is roti and chapati the same The eternal dilemma of a clueless foodie_compressed.pdf