Papads of all shapes and sizes to be treated equally, Fryums not so much
A western Indian thali might just be frowned upon if it does not have papad to go with. A very famous snack in Gujarat and an imperative part of the Gujarati cuisine, papads do not attract any GST as per the ruling of the Gujarat bench of the Authority for Advance Ruling (AAR).
The AAR bench noted but a simple fact that papads are homemade. Old traditional round papads can easily be given innumerable shapes and sizes before drying of the dough. Technology can provide even more options to experiment with it.
Papad is a snack prepared with flour, salt, oil and other spices. It’s dried and uncooked till it’s roasted or fried to be eaten.
Interestingly, so long as the ingredients of preparation and manufacturing are same, any edible product in any shape and size is a ‘papad’ classified at HSN 19059040, GST rate for which is nil right now.
Global Gruh Udyog, a puri papad and unfried papad manufacturer which deals with the varieties of jeeera, red chilli, green chilli, rice & moong dal; sought a ruling for its product line.
Fryums, made with flour and additives was not considered as ‘papad’, months ago in Sonal Products case. The Gujarat AAR bench stated that a GST of 18% will be levied on Fryums.
Some high court rulings have treated fryums and papad alike. Fruyms could also be mixes with spices and produced in different shapes and sizes; hence should attract nil GST rate, highlighted a chartered accountant.