When business magnate Harsh Goenka took to Twitter to express his surprise at the taxation of papads -- he believed that square papads attracted GST while round ones did not -- his claim attracted attention from the central tax body.
But is that the case? Do taxes on papads change based on shape? The Central Board of Indirect Taxes and Customs (CBIC) has debunked this claim.
RPG Enterprises CEO Harsh Goenka tweeted, “Did you know that a round papad is exempt from GST and a square papad attracts GST? Can you suggest a good chartered accountant who can make me understand the logic?”
The CBIC, clarifying Goenka's question, said that there is no GST on papad of any shape or form.
“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 http://cbic.gov.in,” it said.
The Goods and Services Tax was launched in 2017 and replaced excise duties, service tax, surcharges and other cesses.