“Pizza topping is not pizza, will attract 18% GST” – Reality or Confusion?

1. In my opinion, the Ruling has been completely misrepresented by the news media as well by most of the professionals who chose not to read the entire content of the Ruling. Statements like “pizza topping is not pizza” appear to be completely wrong & misleading.

2. There was no dispute regarding classifying the product as pizza per se. Professionals can please share their view in the comment section below.

3. Of course, our tax authorities at times behave as if they are from Mars by distinguishing paratha roti and giving different rates. But the present one is a little different.]

The short overview of the case is as under:

1. The Applicant is in the business of preparation of “pizza topping”.

2. This is a mixture comprising mozzarella cheese, milk solids, milk powder, water, vegetable fat and some preservatives.

3. The contention of the Applicant was that this product must be classified under the HSN 0406 as it primarily comprises cheese and has a cheesy character. Hence, it shall be classified as ‘cheese and curd’.

4. It was ruled that ‘cheese’ and ‘pizza toppings’ are not one and the same.

5. The fact that vegetable fat is added in the preparation, leads to loss of its character as cheese.

6. As such, pizza topping shall be classified under HSN 2106 [Food preparations not elsewhere specified or included].

The new item with the above title has been covered almost in various media. One such item is as under. I would request the professional colleagues to please opine your views and correct me if I am wrong –