One item on the Italian cuisine that everybody is fond of is of course PIZZA. This is also apparent from the fact that after the Haryana AAAR announced a GST ruling on classification of pizza toppings, ‘Pizza’ trended on Indian twitter. Thus, there remains no doubt on the popularity of pizza and the delight it brings to the Indian public. The Haryana AAAR has recently pronounced in the case of Khera Trading Company [TS-1354-AAAR(HAR)-2019-GST] that pizza toppings is not processed cheese and shall be liable to 18% GST since its best fits into the residuary category. With this pronouncement, there were multiple news items and media reports wherein it was highlighted that pizza will become costlier, pizza topping is not pizza and hence it shall attract higher rate of tax, etc. The narrative in these reports provide a view that the applicant of the AAR wanted to classify the pizza toppings along with the pizza and charge GST rate accordingly.
Source Taxscan
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