Pizza topping isn’t pizza, will attract higher GST of 18%: Haryana appellate authority

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The Haryana appellate authority for advance ruling (AAAR) has ruled in favour of levying a higher GST on pizza toppings, stating that a pizza topping isn’t pizza, its preparation method is different, and should therefore be categorised differently.

In a March 10 ruling, the AAAR said that pizza toppings will now attract an 18 percent goods and services (GST) tax, The Economic Times reported.

Notably, the GST rates levied on pizzas vary on the basis of how they are prepared and the selling process. For instance, a pizza prepared and consumed inside a restaurant would cost less as it attracts a GST of five percent only. On the other hand, buying a pizza base separately would attract 12 percent GST, while a home-delivered one would attract 18 percent GST.

Accordingly, the Haryana body pointed out that the ingredients that are used to prepare a topping are sold as cheese toppings although they are not and hence should be taxed more.

The AAAR further explained that a pizza topping contains a substantial portion (22 percent) of “vegetable fat”, which is why it should not be as any type of cheese, processed or otherwise.

Taking the ingredients into account, a pizza topping should therefore be classified as “food preparation”, it added.