Paratha classification under GST: product needing further heating falls in residuary food-preparation heading and misses concessional bread-entry rate.

Paratha requiring heating on a griddle before it becomes fit for consumption was classified under HSN 21069099 because it was not comparable in supplied condition to ready-to-eat items such as plain chapatti, roti or khakhra, and no more specific tariff heading applied. The ruling held that the concessional GST entry for khakhra, plain chapatti or roti under Entry 99A of Schedule I did not cover paratha, as the product differed in composition and character and was not a ready-to-consume item within that entry. As a result, paratha was held liable to GST at the general applicable rate.

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Issues: (i) Whether the product 'Paratha' manufactured by the applicant is classifiable under HSN 19059090 or under HSN 21069099; (ii) Whether 'Paratha' is covered by Entry No. 99A of Schedule I of Notification No. 01/2017-Central Tax (Rate) as amended, so as to attract GST at 5%.

Issue (i): Whether the product 'Paratha' manufactured by the applicant is classifiable under HSN 19059090 or under HSN 21069099.

Analysis: The product was found to require heating on a griddle before it becomes fit for consumption, and therefore it was not treated as a ready-to-eat preparation like plain chapatti, roti or khakhra. The reasoning applied the tariff structure and the general rules of interpretation, holding that Chapter 19 was not appropriate because the goods were not comparable to the cited bread items in their condition as supplied. Since the product was not specifically covered elsewhere and required processing before human consumption, the residuary food-preparation heading was applied. Where the competing descriptions did not fit, the later heading in numerical order was preferred.

Conclusion: The product 'Paratha' was held to be classifiable under HSN 21069099.

Issue (ii): Whether 'Paratha' is covered by Entry No. 99A of Schedule I of Notification No. 01/2017-Central Tax (Rate) as amended, so as to attract GST at 5%.

Analysis: The concessional entry was confined to khakhra, plain chapatti or roti under heading 1905 or 2106. The product in question was held to be different in composition and character, and it was also not a ready-to-consume item within the meaning of that entry. Once the product was classified under the residuary food-preparation heading, it did not answer the specific description required for the concessional notification entry.

Conclusion: The product 'Paratha' was held not to fall within Entry No. 99A and was liable to GST at the general rate applicable under the relevant schedule entries.

Final Conclusion: The ruling determined that the applicant's paratha products fall under the residuary food-preparation heading and not within the concessional rate entry for khakhra, plain chapatti or roti; the products were therefore subject to GST at the applicable general rate.

Ratio Decidendi: A food product requiring further processing before consumption, and not specifically covered by a more specific tariff description, is classifiable under the residuary food-preparation heading and does not qualify for a concessional entry confined to named ready-to-consume bread items.

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