Tax department debunks Harsh Goenka’s claim: ‘No GST on papad, whatever shape or form’
Business magnate Harsh Goenka aired his doubt on Twitter to express his surprise at the taxation of papads, but CBIC debunked the claim for him.
FollowThe Central Board of Indirect Taxes & Customs has clarified that papad, whatever its shape or name, is exempted from GST after a social media post claimed that a round papad is exempted from the tax while a square variant attracts it.
Sharing the message, Harsh Goenka, President of RPG Group, tweeted: “Did you know that a round papad is GST exempt and a square papad attracts GST? Can anyone suggest a good chartered accountant who can make me understand the logic? “
The tax body's response came after RPG Enterprises Chairman’s tweet and said that there is no GST on papad of any shape or form.
“Papad, by whatever name known, is exempt from GST vide Entry No. 96 of GST notification No.2/2017-CT(R). This entry does not distinguish based on the shape of papad. This notification is available at http://cbic.gov.in,” it said.
A seasoned flatbread, papad is made from dried dough of black gram bean flour, either fried or cooked with dry heat until becomes crunchy.
Implemented in July 2017, the Goods and Services Tax or GST subsumed all the central excise duties and local levies. GST is a destination-based tax on consumption of goods and services.
A whole host of excise duties, service tax, surcharges and cesses, sales tax, state value added tax (VAT) and other taxes were replaced with one single tax called GST.
It is applicable on all goods and services except on alcoholic beverages and petroleum products.
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