The Kerala High Court has put a stay on its recent judgment in which it held that the Malabar parota will attract Goods and Services Tax (GST) at 5% and not 18%, Bar and Bench reported. Justices A Muhamed Mustaque and S Manu have stayed the judgment for two months. The Kerala government had challenged the judgment passed by single-judge this year.
Modern Enterprises Pvt Ltd had filed a petition before the Kerala High Court challenging an order of the Appellate Authority for Advanced Ruling which held that its product, classic Malabar Parota and whole wheat Malabar Parota are taxable at 18% GST, according to Bar & Bench.
Modern Enterprises argued that its products would fall under Tariff item No.19059090 of the First Schedule to Customs Tariff Act, 1975, as Indian flatbreads are covered by the expression ‘bread’ under Heading 1905.
The company said the ingredients used and the process involved in making the parotas were similar to these products and, therefore, would fall in this category.
The single-judge, in April this year, held that Malabar Parota comes within HSN 1905 since the ingredients and preparation of parotas are similar to that of products that are taxable at 5% GST.
The State government’s appeal is likely to be heard after the completion of the two months of stay period.