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‘Classic Malabar Parota’ and ‘Whole Wheat Malabar Parota’ classified under Schedule III of GST Laws, vide Heading 2106 ‘Food preparations not elsewhere specified or included’ and is taxable @18% GST.

Shanti Prime Publication Pvt. Ltd.

Classification of goods—Classic Malabar Parota—In the instant application applicant requested advance ruling on the following—

  1. Classification of ‘Classic Malabar Parota’ and ‘Whole Wheat Malabar Parota’.
  2. Eligibility Of exemption from GST vide Notification No. 2/2017 - Central Tax/ SRO No.361/2017.

The major ingredients are wheat atta, Edible vegetable oil, Milk solids, Sugar, Salt, Yeast etc., according to applicant these products qualify as bread classifiable under Heading 1905 and eligible for GST exemption.

Held that—Bread is a staple food prepared by cooking dough of flour, water and yeast. Whereas parotta is prepared by using ghee or oil. The dough is rolled out and brushed with ghee or oil then folded again, brushed with more ghee and folded again. This is then rolled out to a circle and cooked on a buttered griddle. The heat makes the layers of dough puff up slightly, resulting in a more flaky texture.
As per entry 97 of Notification No.2/2017 - Central Tax / SRO. No.361/2017, only specific commodity ‘Bread branded or otherwise’ covered under HSN 1905 is eligible for exemption.

As there is substantial distinction between bread and parotta, in preparation, use, taste, digestion, even though both of them are used as food. Therefore the exemption given to the pecific commodity under GST tariff ‘Bread branded or otherwise’ is eo nomine exclusively covered under HSN 1905. It has no wider scope to incorporate different food stuff prepared using wheat flour.

The word ‘Food Preparations’ connotes preparations for use, either directly or after processing such as cooking for human consumption. Therefore all food preparations which are not specifically mentioned in any other entry squarely comes under Heading 2106. The plain language used in the heading does not need an interpreter, absolute sententia expositore non indiget.

Ruling—‘Classic Malabar Parota’ and ‘Whole Wheat Malabar Parota’ classified under Schedule III of GST Laws, vide Heading 2106 ‘Food preparations not elsewhere specified or included’ and is taxable @18% GST.

Eligibility of exemption from GST vide Notification No.2/2017 - Central Tax/ SRO No.361/2017 is applicable only for specific commodity ‘Bread branded or otherwise’ covered under HSN 1905.[AUTHORITY FOR ADVANCE RULINGS, KERALA]