treeviewGastronomic delights of Pizzas have made the Italian origin dish a household favourite in India. Fatty cheese bursts, rich meat or sweet sauce toppings are one of the key reasons why pizzas taste so good. However, economics and taxation work differently and a pizza topping attracts higher goods and services tax (GST) than the pizza itself.
Yes, you have read it right, there are different GST rates on a pizza sold and eaten within a restaurant, pizza delivered at home, pizza base, and the pizza toppings.
Haryana appellate authority for advance ruling (AAAR) has stated that since a pizza topping is not a pizza, 18 per cent of GST must be levied on the pizza topping, according to an Economic Times report.
The GST rates on Pizzas are calculated based on the preparation and method of selling the food item.
So, if you buy and eat a pizza at a restaurant, you need to pay 5 per cent GST. However, if a pizza is delivered at home, then a GST of 18 per cent is levied.
The GST rate on pizza base, which is bought separately, is 12 per cent.
These different GST rates may lead to a taxation dilemma for pizza brands. The pizza brands are yet to react to the matter.
We can certainly hope complicated taxation will not lead to price hike for our favourite pizzas.