Gujarat Authority Rules 18% GST on Instant Mixes Including Idli, Dosa, and Khaman Flour

The Gujarat Appellate Authority for Advance Ruling (GAAAR) has determined that instant mixes such as idli, dosa, and khaman flour are not comparable to chhatua or sattu and should incur an 18% GST. The decision was made despite opposition from Kitchen Express Overseas Ltd, which argued for a lower tax rate.

The Gujarat Appellate Authority for Advance Ruling (GAAAR) has determined that instant mixes, including idli, dosa, and khaman flour, do not qualify as chhatua or sattu and, therefore, should be subject to an 18% Goods and Services Tax (GST).

Kitchen Express Overseas Ltd, a Gujarat-based company, contested the decision, arguing that its seven 'instant flour mixes' are 'ready to cook' and should attract a 5% GST. The company's products include flour mixes for gota, khaman, dalwada, dahi-wada, dhokla, idli, and dosa.

The GAAAR, however, rejected the plea, stating that the ingredients in these instant mixes are not covered under the same GST rules as sattu. The authority cited a Central Board of Indirect Taxes and Customs (CBIC) circular specifying that sattu's ingredients qualify for a 5% tax rate, but found that the appellant's products contain additional spices and ingredients.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)