Will eating dosa and idli become more expensive? Instant flour mix will attract 18% GST instead of 5%:Gujarat-based Kitchen Express Overseas Limited had appealed against the decision of the GST Advanced Authority. Kitchen Express said that its seven instant flour mixes are not ready-to-eat because they have to undergo some cooking processes. But its appeal was rejected and now these products will be subject to GST at the rate of 18 per cent.

New Delhi. Idli, Dosa and Khaman are the favorite breakfast and meal of many people. But, now enjoying them can be a little expensive. Actually, an important clarification has come on the Goods and Services Tax (GST) levied on instant flour mix used in making idli, dosa and khaman. Now it has been decided that instant flour mix will be taxed at 18 percent and not 5 percent.

This decision has been given by the Gujarat Appellate Authority for Advanced Ruling (GAAAR). It says that instant mixes including flour used in idli, dosa and khaman cannot be classified as chatua or sattu. Therefore, 18 percent GST should be imposed on them.

What is the whole matter?

Gujarat-based Kitchen Express Overseas Ltd had approached AAAR against the decision of the GST Advanced Authority. Kitchen Express said that its seven 'instant flour mixes' are not 'ready to eat' as they have to undergo some cooking processes. In such a situation, they can be called 'ready to cook'. The company sells flour mixes for gota, khaman, dalwada, dahi-vada, dhokla, idli and dosa in powder form.

Kitchen Express argued that it was similar to sattu and should attract 5 per cent goods and services tax (GST). However, GAAAR rejected its plea. It said that the ingredients used in making 'instant atta mix' are not covered under the proper GST rules, as is the case with sattu.

What did GAAAR say?

According to a CBIC circular, small quantities of ingredients used to make sattu are eligible for 5 per cent tax rate under GST rules. "However, this clarification is not applicable in the present case as the products supplied by the appellant contain spices as well as other ingredients. This is not the case with 'sattu'," GAAAR said.

The appellate authority also said that the end consumer has to do some preparation to cook the instant mix flour. However, this alone cannot be a basis for holding that 18% GST should not be levied on instant mix flour.