“No GST on papad, whatever its shape”: CBIC corrects Harsh Goenka

Team Udayavani, Sep 1, 2021, 12:48 PM IST

The Central Board of Indirect Taxes and Customs (CBIC) has clarified on a tweet posted by businessman Harsh Goenka that Papad attracts GST based on its shape.

Harsh Goenka, chairman of RPG Enterprises, in a tweet stated, “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?”

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

As a reply to queries on how he got this information, Mr Goenka said a friend had told him.

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/ckIfjzg8hw https://t.co/19GbQJvYZe

— CBIC (@cbic_india) August 31, 2021

Responding to his query, the CBIC clarified through its official handle, “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.”

For the unversed, Goods and Services Tax or GST was implemented in July 2017 and it subsumed all the central excise duties and local levies.

The GST is applicable on all goods and services except on alcoholic beverages and petroleum products.