Pizza toppings prepared differently, should be charged 18% GST
The Haryana appellate authority for advance ruling (AAAR) has ruled that a pizza topping is not a pizza and hence should be classified differently and levied a higher 18% Goods and Services Tax (GST).
The AAAR ruled on March 10 that pizza topping should face 18% GST as its preparation method is different from that of a pizza. It considered all the ingredients used in a topping and concluded that while a pizza topping is sold as a “cheese topping” it’s not really cheese and hence should attract higher taxes.
The authority ruled that pizza topping contains “vegetable fat” as a substantial portion, being 22% of the ingredients, and hence, it does not qualify to be categorized as ‘processed cheese’ or a type of cheese. Pizza topping would merit classification as ‘food preparation’, it said.
The decision could complicate taxation for several pizza brands, especially when the pizzas are sold within a hotel or restaurant, said tax experts.
GST rates on pizzas differ on the basis of how they are prepared and sold. A pizza sold and eaten within a restaurant attracts 5% GST, the pizza base bought separately attracts 12% while a pizza delivered at home attracts 18% GST.
Earlier, too, several AARs have ruled on whether GST is applicable on food items. So, parata is not similar to paratha, but naan and a samosa eaten over the counter and on a chair outside the shop should be taxed differently.
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What a classification by govt and also courts ,what a great we are living ,god save this idiet public for electing & what a skilled govt to take us to trillions ,& what an judgement with which whole gets an example, by this if coffee power is 20%,sugar is 10%,milk is no tax then how to tax drinking coffee, & what abt coffee without sugar
It is silly to isolate the masalas in any food items n then tax.