Lawstreet Journal

18% GST Payable On Pizza Topping As Pizza Topping Is Not Pizza: AAAR

Lawstreet Journal 20 Mar 2022 1:04am

Image courtesy: Lawstreet Journal Business 18% GST Payable On Pizza Topping As Pizza Topping Is Not Pizza: AAAR

The Haryana Appellate Authority of Advance Ruling (AAAR) bench consisting of Amit Kumar Aggarwal and Anil Kumar Jain held that 18% Goods and Service Tax (GST) is payable on pizza topping as pizza topping is not pizza.

The appellant is in the business of distributing various dairy and non-dairy products and is registered with the jurisdictional GST authorities. The product “pizza topping,” which is sold by the appellant under the brand “Goodrich,” is a proprietary food consisting of water, mozzarella cheese, vegetable oil, and milk solids along with premixes of emulsifiers and stabilizers. It is ideal for use on pizza as a topping of cheese as it provides a smooth, lasting taste and stringiness to the pizza.

The applicant submitted that the product “Pizza Topping” contained 14.5 percent mozzarella cheese and 15 percent other milk products, along with other ingredients, forming a type of cheese. Thus, it is classifiable under Chapter Heading 406 (SI. No. 13 of Schedule-II to Notification No. 1/2017 Integrated Tax/Notification No. 1/2017-Central Tax and Notification No. 35/ST-2 as “cheese” and chargeable to GST at the rate of 12%.

The applicant has sought an advance ruling on the issue of whether the product “pizza topping” is classifiable under Chapter Heading 0406 [S. No. 13 of Schedule-1 of Notification No. 1/2017-Integrated Tax (Rate) dated June 28, 2017, attracting 5% IGST].

The Authority of Advance Ruling held that the “pizza topping” being manufactured by the applicant cannot be classified as “process cheese” under chapter heading 0406, but rather it merits classification… Continue Reading...

Tagged: AAAR   Pizza   GST  
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