In a recent ruling, the Authority for Advanced Rulings (AAR), Karnataka bench, has differentiated between parotas and rotis and subjected parotas to a higher GST rate of 18 per cent. Roti enjoys a GST rate of 5 per cent. The authority classified ‘parota’ under Chapter Heading 2106 stating that it is not khakhra, plain chapati or roti, so 18% GST is applicable. Differing from the authority’s view, iD Fresh, India’s largest fresh ready-to-cook startup, funded by Premji Invest and Helion Ventures, decided to appeal further on this matter. P C Musthafa, CEO and co-founder, iD Fresh, said, “We are committed to following the law of the land and work in the interest of the community. In today’s challenging times, we more than ever before need to build an environment that is conducive to recovery and growth. We have decided to appeal against the recent ruling by the Authority of Advance Ruling Karnataka that ‘parota’ is classified under Chapter Heading 2106 and is not khakhra, plain chapati or roti and hence, 18% of GST is applicable. In 2018, AAR Maharashtra in a similar ruling : 2018-VIL-312-AAR had observed that the unleavened flatbread products, such as plain chapati, tortilla, roti, roti rolls, wraps, paratha and paratha wraps are covered under Entry No. 99 A of Schedule I and therefore they are liable for GST at 5%. “Also, in its 2012 notification: FD 57 CSL 2012, under the Karnataka Value Added Tax Act, 2003, the government had not made such distinction and reduced the tax payable for ready-to-cook chapati and parota to 5%. Hence, we are hopeful of getting this matter resolved soon so that our consumers can continue to enjoy healthy Indian foods at affordable prices,” said the iD Foods chief