Earning dough from bread

Earning dough from bread

Or, more accurately, getting tax from Indian rotis.

Lemme explain.

There is a wonderful discussion going on here at the moment, about the different rates of GST (General Sales tax) applicable to different kinds of Indian bread.

The generic term, in Hindi, for bread is “roti”, but a roti is also a particular kind of bread, as opposed to a kulcha or a paratha or a chapatti.

However, the GST AAR (Authority for Advance Rulings) has made a distinction between rotis and parathas, deeming that the latter should be subject to 18% GST, whereas rotis are taxed at 5%.

Amidst all the hue & cry (I think the ruling actually only applies to frozen food) there has been some seriously clever meme-ing and tweeting going on.

Like so:

And, my personal favourite šŸ™‚

Stretching the whole food & drink analogy even further, perhaps this will turn out to be a bit of a storm in teacup.


  1. Liz Jackson

    No VAT is charged on plain biscuits or cakes. But when a biscuit is covered in chocolate it becomes a luxury and standard rate VAT at 20% is added to the price. Mcvities, the market leaders for Jaffa Cakes added chocolate to thecake and tangy orange base, so classifying them as cakes, not biscuits.

    1. Christine Pemberton

      So is chocolate also at 20%? And are cakes taxed less than biscuits? Presumably so, judging by your Jaffa Cakes ref. Imagine being the boffin who dreams all this up!

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