Categories: Business

Papads do not attract GST, but Fryum faces a level of 18%

Mumbai: No Gujarati Thali is complete without papad, fried or grilled.
Fortunately for consumers, because the GST burden ultimately borne by them, benches Gujarat from the authority for advance ruling (AAR) has held that papad would attract GST Nile.
Interestingly, AAR bench observed that the papad is handmade all.
Therefore, it is easier to roll it into a round shape.
Today, with the advancement of technology, the traditional round papad old has given way to a wide range of shapes and sizes.
But – for similar items in connection with materials, manufacturing processes and the use – it will be classified in HSN papad 19059040.
Currently, the classification level of GST zero.
Manufacturing, Global Gruh Udyog, which produces Puri Papad and Papad which is not easy (in varieties like Jeera, Red Chilli, Green Chilli, Rice & Mung Dal) seeking a decision on the classification of products.
Papad is Indian food prepared mainly with ingredients such as flour, spices, salt and oil.
This product is not terfried and it was not the food being cooked.
Furthermore, this is not instant food prepared for human consumption.
Consumers need to fry or bake the product to make it ready for consumption, the applicant explained.
This relates to indicate that a few months ago in the case of products sonal, Bench Gujarat fried AAR has held to be “non Papad” and subject to GST at 18%.
Materials for fryum is maida flour mixed with other additives.
“In the past, several decisions of high courts have been taking care of fried into papad.
Even if we only focus on the decision of AAR recently, it is clear that because fryum also flour mixed with spices and come in many shapes and sizes, these should also be classified as papad nil.
While the decision of the AAR does not set a precedent, they have a persuasive impact in the assessment.
If the manufacturer has taken a different view, usually results in litigation, “said a chartered accountant.

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