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Revised GST Rates for Indian Flatbreads

The 56th GST Council meeting has standardized GST rates for traditional Indian flatbreads like roti, chapati, khakhra, paratha, and parotta, effective September 22, 2025. This change reduces the GST on all these items to zero, eliminating the previous disparity where parathas were taxed at 18% and rotis at 5%. The move aims to simplify taxation and make these everyday food items more affordable for consumers, aligning with the government's efforts for a more consumer-friendly GST framework.

📖 2 min read read🏷️ GST Rates

Revised GST Rates for Indian Flatbreads

A significant discussion has emerged among Indian consumers regarding the Goods and Services Tax (GST) applied to parathas, primarily due to previous disparities in taxation compared to rotis. However, the 56th GST Council meeting recently provided welcome clarity and adjustments that are expected to benefit many.

Effective September 22, 2025, the GST rate for a variety of traditional Indian flatbreads, such as roti, chapati, khakhra, paratha, and parotta, has been reduced to zero. This marks a substantial change from prior regulations, where rotis were subject to 5% GST, and parathas, classified as processed items requiring heating, incurred an 18% GST.

The earlier taxation difference arose because parathas include extra ingredients and necessitate heating before consumption, distinguishing them from simple rotis. This perceived complexity led to their classification under a higher tax category. Nevertheless, recent governmental reforms aim to streamline these rules and alleviate the tax burden on these widely consumed food items.

To summarize the changes:

  • Roti and Chapati: Previously taxed at 5% GST, now reduced to 0%.
  • Paratha: Formerly subject to 18% GST, now also decreased to 0%.

Consequently, all these beloved Indian bread varieties now share an equal GST status, contributing to their increased affordability for consumers. This adjustment aligns with the government's broader efforts to simplify GST regulations and enhance their consumer-friendliness, although the official notification from the Central Board of Indirect Taxes and Customs (CBIC) is still pending.

Further Reading

Frequently Asked Questions

What is the Goods and Services Tax (GST) system in India?
The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It replaced multiple cascading taxes levied by central and state governments, aiming to streamline the tax structure and create a common national market.
How many GST slabs are currently applicable in India?
Currently, India's GST regime primarily features five main tax slabs: 0%, 5%, 12%, 18%, and 28%. Essential goods and services often fall into lower slabs, while luxury items and demerit goods are typically taxed at higher rates.
What is Input Tax Credit (ITC) under GST?
Input Tax Credit (ITC) is a mechanism under GST that allows taxpayers to claim credit for the GST paid on purchases of goods and services used for business purposes. This credit can then be set off against the GST payable on their outward supplies, preventing a cascading effect of taxes.
Who is mandated to register for GST in India?
GST registration is mandatory for businesses exceeding a specified annual turnover threshold, which varies by state and type of goods/services. Additionally, certain businesses, such as those involved in inter-state supplies or e-commerce operators, must register irrespective of their turnover.
What are the different types of GST implemented in India?
In India, there are four main types of GST: Central GST (CGST) levied by the Central Government, State GST (SGST) levied by State Governments, Integrated GST (IGST) for inter-state transactions, and Union Territory GST (UTGST) for Union Territories.