Pizza’s gastronomic pleasures have made the Italian-originated meal a family favourite in India. However, economics and taxation are not the same things, and a pizza topping attracts a greater goods and services tax (GST) than the pizza itself.
Yes, you read it correctly: there are various GST rates for pizza sold and consumed in a restaurant, pizza delivered to your home, pizza base, and pizza toppings.
According to an Economic Times storey, the Haryana appellate authority for advance ruling (AAAR) has decided that because a pizza topping is not a pizza, 18% GST must be paid on the pizza topping.
PIZZA GST RATES
Pizza GST rates are computed based on the manner of preparation and sale of the food item.
So, if you buy and eat a pizza at a restaurant, you must pay 5% GST. If, on the other hand, a pizza is delivered to your home, an 18% GST is applied.
The GST tax for pizza bases, which are purchased separately, is 12%.
As per the ET report, the AAAR judgement on March 10 ruled that a GST of 18% must be paid on pizza topping because the cooking procedure differed from that of a pizza.
These disparities in GST rates may create a taxation quandary for pizza companies. The pizza companies have yet to respond to the situation.