Pizza Lovers! We bear not so delicious news. The Haryana appellate authority for advance ruling (AAAR) has stated that pizza toppings are not pizza, so they should be classified separately and attract a higher 18 per cent goods and services tax (GST). Now, this, in turn, may lead to tax complications for several pizza brands, especially those served at restaurants and hotels. Here’s what you need to know.
Pizza Toppings To Attract 18 Percent GST
On March 10, the AAAR stated that pizza topping is not pizza. So it would be levied with a whopping 18 per cent GST as its preparation method is different from baking pizzas. The body analysed all the ingredients used in preparing pizza toppings. It revealed that usually pizza topping is sold as “cheese topping” when in actuality it is different. This isn’t cheese. So it revealed that pizza toppings must be taxed more. According to a Times Now report, the AAAR body highlighted that pizza toppings contain vegetable fat. For this reason, pizza topping cannot be categorised into the ‘processed cheese” category. It should instead be classified under ‘food preparation’.
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Pizzas Served In Restaurants & Hotels May Get Costlier
When it comes to GST on pizzas, there are 3 categories. Pizzas consumed in restaurants attract 5 per cent GST. Those ordered through home delivery attract 18 per cent GST. And a pizza base bought from the market is levied with 12 per cent GST. So, with 18 per cent GST levied on pizza toppings, this could mean that pizzas served in restaurants and ordered through home delivery might get costlier. Meanwhile, if you’re a pizza lover, do check out these 5 funky pizzas in Mumbai.