Does Papad Shape Affect GST? Harsh Goenka's Query Answered By Tax Body

The Goods and Services Tax (GST) came into force across the country in 2017 and is applicable on all goods and services except beverages and petroleum. Food items too are subject to GST, and there is often debate and discussion on what foods should be taxed and exempt. Industrialist Harsh Goenka took to Twitter to share what he thought was a loophole in the taxation system. According to Goenka's tweet, the shape of the Papad determines whether it is taxable or not. Take a look:

Did you know that a round papad is exempt from GST and a square papad attracts GST ? Can anyone suggest a good chartered accountant who can make me understand the logic? pic.twitter.com/tlu159AdIJ— Harsh Goenka (@hvgoenka) August 31, 2021

"Did you know that around papad is exempt from GST and square papad attracts GST? Can anyone suggest a good chartered accountant who can make me understand the logic," Harsh Goenka asked sharing a picture of the different shapes of Papad. On being asked how he received the information, he said he was told by a friend.

The tweet received over 5k likes and hundreds of retweets in a short span of time. Several Twitter users reacted to the post, including the official handle of the Central Board of Indirect Taxes and Customs. They clarified that Harsh Goenka's stance, saying that Papad was exempt from GST irrespective of its name or shape. Take a look:

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 https://t.co/ckIfjzg8hwhttps://t.co/19GbQJvYZe— CBIC (@cbic_india) August 31, 2021

(Also Read: Harsh Goenka Shares Video Of Mumbai's Street Food Vendors, Calls It 'Ironic')

"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 https://cbic.gov.in," they wrote.

Recently, a GST ruling in Tamil Nadu had appeared in the news. As per the ruling, packaged Dosa mix or other ready-to-cook items should be taxed at 18%. The reason is that they are packaged products and cannot be included in the lower tax brackets. This ruling led to debate and discussion among users online, as these mixes are used practically every day in Indian households.