Friday, April 19, 2024

Malabar Parota to Attract Lower GST Rate of 5%

In a significant judgment, the Kerala High Court ruled that Classic Malabar Parota and Whole Wheat Malabar Parota should be classified under HSN code 1905, qualifying them for a 5% GST rate under SL No 99A of Notification 1/2017-Central Tax (Rate). This decision came in the case of Modern Food Enterprises (P.) Ltd. v. Union of India, overturning an earlier appellate authority's classification that would have subjected these products to an 18% GST rate. The court's ruling was based on the specific ingredients and preparation process of the products, aligning them with others in the same HSN code, typically associated with preparations of cereals, flours, starch, or milk. This judgment is crucial for ensuring consistent tax treatment and clarity on GST implications for similar food items.