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GST on Pizza: Case reached in court regarding tax not taste of pizza

GST on Pizza Topping: The toppings of the pizza make it delicious. It is in August that a company making pizza toppings had to go to court regarding the Goods and Services Tax (GST) levied on it. GST was implemented five years ago and now about $ 17 billion is going into the account of the government every month. Now let’s talk about the matter that reached the court.

Regarding Mozzarella toppings, Kheda Trading Company told the court that it should be classified as cheese, which attracts GST at the rate of 12 percent. The company also said that cheese and milk solids make up one-third of the pizza toppings. According to a BBC report, a Haryana court expressed its disagreement on this matter. The court said that the item included in the topping cannot be classified as a stand-alone item.
The court said that the share of vegetable oil in the toppings is 22 percent. The company said that the oil not only adds flavor to the pizza, but it also makes the texture better. It’s cheap too. The court said that vegetable fat is not an ingredient of cheese. Due to this, toppings cannot be included in the cheese, it would be better to call it edible preparation, and GST will be levied at the rate of 18 percent. And thus the company lost the case.

Like the toppings of pizza, the matter related to paratha also reached the court. The hearing on the matter continued for 20 months. In September, it was decided that paratha would attract GST at the rate of 18 percent. At the same time, GST is levied on roti at the rate of 5 percent.

You will remember that the court had also given a big decision regarding the GST on ice cream. The court had said that more tax would have to be paid on ice cream sold at a parlor than on a restaurant. The decision to impose 18 percent GST on ice cream sold in the parlor came. The court had said that ice cream parlors sell ready-made ice cream and do not make ice cream for consumption like a restaurant.

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