Nagpur: Haryana Appellate authority for Advance Ruling (AAAR) on Tuesday announced that 18 per cent of Goods and Services Tax Council (GST) would be levied just on the pizza toppings.
The internet was flooded with memes after the announcement. Take a look here:
The AAAR ruled that the preparation method is different and should be therefore categorised differently. As per a report, In a march 10 ruling, the AAAR said that pizza toppings will now attract an 18 per cent goods and services tax.
Pizza Toppings are not Pizza hence taxable at higher rate of GST
Fryms are not Papad hence not exempt under GST.
Parotas are not rotis hence leviable to higher GST rates 😂
Ye sab kya chal raha hai GST me 😅😅#AdvanceRulling— 𝐂𝐀 𝐀𝐊 𝐌𝐢𝐭𝐭𝐚𝐥 (@CAamanmittal) March 15, 2022
The GST levied on pizzas vary on the basis of how they are prepared and the selling process. The body also stated that all ingredients used in a topping, concluding that a pizza topping is sold as a cheese topping but is really not cheese and should be taxed more.
Currently, the GST rates on pizzas differ on the basis of their preparation and selling process. The GST rate levied could be based on three tests– common parlance test, end use test or ingredients test according to tax experts. However, the netizens are really not pleased by AAAR’s move.
