New Delhi: In a big jolt to pizza lovers, the Haryana Appellate Authority for Advance Ruling (AAAR) has held that pizza topping is not a pizza and thus it should attract 18 per cent GST. The AAAR bench comprising Amit Kumar Aggarwal and Anil Kumar Jain underlined that the preparation method of pizza topping is different and the ingredient used in it is not cheese and so should be taxed more.
“A pizza topping contains ‘vegetable fat’ as a substantial portion (about 22 per cent of the ingredients used), thereby it does not qualify to be categorized as ‘processed cheese’ or a type of cheese”, the AAAR highlighted, adding that pizza topping would merit classification as ‘food preparation’,
Following the ruling, pizza started trending on social media. Netizens were seen perplexed as there were apprehensions among them that the rates of pizza might soar. Check out some of the tweets below:-
Say hello to the Topping tax!
Eating pizza at a restaurant: 5% GST
When you buy a pizza base: 12% GST
Home delivered pizza: 18% GSTWant topping on the pizza? Pay another 18% GST
Net net, quietly eat khichdi at home! https://t.co/kO1mAL28kG
— Shruti Malhotra (@Shruti_Malhotra) March 15, 2022
One Pizza
One Topping#GST 🤦 pic.twitter.com/9rovhQcdE3— Ashwin Mushran (@ashwinmushran) March 15, 2022
Oregano toh free rahega na?🥲🥲#gst #domios #tax #gstonpizza pic.twitter.com/5SKdcWTFj2
— Nationalstonkexc (@Nationalstonkx) March 15, 2022
#pizza #gst #tmkoc
Topping bachana😡 pic.twitter.com/K0FZVIeGFO— Himanshu Laddha (@daalchawal96) March 15, 2022
For the unversed, the tax rates on pizzas differ based on their preparation and selling process. If a pizza is eaten within restaurants, a 5% tax is levied on consumers, while a 12% tax is levied on a pizza base bought separately. Takeaways or home-delivered pizzas attract 18% GST.
