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 thus should be categorised differently. Pizza toppings will now reportedly attract an 18 percent goods and services (GST) tax.
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.
Naturally, Twitter was not impressed. Users complained about how complicated calculating taxes has become apart from being unhappy about the higher tax which may lead to a spike in pizza prices.
“I guess it's not just Cryptoverse in India that is confused about Taxes. Pizza toppings to be taxed more GST as it's not pizza,” wrote cryptocurrency exchange WazirX founder Siddharth Menon tweeted.
I guess it's not just Cryptoverse in India that is confused about Taxes.Pizza toppings to be taxed more GST as it's not pizza. https://t.co/blhAxTYwCG
— Siddharth ( WazirX ) (@BuddhaSource) March 15, 2022
Pizza eaten within a restaurant - 5% GST
Pizza base - 12% GST
Pizza Home Delivered - 18% GST
Pizza toppings - 18% GSTBhai pehle aap ye kar lo, uske baad Crypto tax lagana
— Akshat Shrivastava (@Akshat_World) March 15, 2022
My 7 year old nephew removes all pizza toppings when having a pizza.Looks like someone with understanding of a 7 year old has passed this ruling. pic.twitter.com/ahdocdqQdI
— Abhishek Murarka (@abhymurarka) March 15, 2022
Pizza Toppings to Pizza base after AAAR ruling : pic.twitter.com/WztJyz5tqX— Yum (@upsehooon) March 15, 2022
Pizza Toppings are not Pizza hence taxable at higher rate of GSTFryms are not Papad hence not exempt under GST.
Parotas are not rotis hence leviable to higher GST rates
Ye sab kya chal raha hai GST me #AdvanceRulling
— CA AK Mittal (@CAamanmittal) March 15, 2022
India's Pizza PuzzleEating pizza at a restaurant: 5% GST
When you buy a pizza base only: 12% GST
Pizza when delivered home: 18% GSTAnd a recent ruling stated that pizza toppings should be taxed at a higher rate of 18% as compared to pizza.
Itna confusion!
— Anmol Sharma (@financebyanmol) March 16, 2022
People in the US: pineapple on pizza is yum.
People in Italy: aiii no, no pineapple on pizza.
People in India: no toppings on pizza. pic.twitter.com/N8SWnm1l30— Snats & the Art of Psychobabble (@_snats) March 15, 2022
Taking the ingredients into account, a pizza topping should therefore be classified as “food preparation”, it added.
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