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.
PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views
For all the latest updates, download PGurus App.
- Jaishankar highlights challenges, achievements of India’s G20 Presidency at ‘India-UN for Global South: Delivering for Development’ event - September 24, 2023
- PM Modi flags off 9 Vande Bharat Express trains across 11 states - September 24, 2023
- Uttar Pradesh: Yogi govt to take action on schools operating without recognition - September 24, 2023
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.