Hardly have you ever thought about their difference before eating paratha or roti. Usually, both of them are eaten with the same type of gravy or grilled fried food in India. But, there is a huge difference between Paratha and Roti for Goods and Services Tax (GST) and that is why 18 percent tax (GST on Parotas) will have to be paid on Paratha. As a matter of fact, the Authority of Advance Rulings (Karnataka Bench) said in a decision that the paratha will attract 18 percent GST. On the other hand, GST of 18 percent will not be payable on the roti.
How the GST story started on paratha and roti
Actually, a private food manufacturing company had applied to AAR. In this application, the company said that paratha should be classified as ‘Khakhara, Plain Chapati or Roti’. Under Entry 99A of Schedule 1 of GST notification, only 5% GST is to be given on roti.
The English newspaper has mentioned the matter in a report on Thursday. In this report, there is a company called ID Fresh Food, which prepares and supplies fresh foods like idli and dosa batter, paratha, curd, and cheese. This company had applied to AAR to ask for information about GST on the wheat paratha and Malabar paratha.