AAAR bench of Amit Kumar Aggarwal and Anil Kumar Jain underlined that pizza topping preparation method is different and ingredient used is not cheese.
Do you know why Pizza is trending on Twitter? Well, Pizza found a spot on the Twitter trend list after a bizarre ruling by Haryana appellate authority for advance ruling. The Haryana appellate authority for advance ruling (AAAR) stated that 18% of GST should be levied on the pizza topping since the topping is not a pizza.
This has led to a lot of memes being circulated on social media. The AAAR bench comprising Amit Kumar Aggarwal and Anil Kumar Jain underlined that the preparation method of pizza topping is different and the ingredient used in it is not cheese and so should be taxed more.
Read | 'One Pizza, One Topping': New GST ruling on pizza toppings confuses netizens
"A pizza topping contains 'vegetable fat' as a substantial portion (about 22% of the ingredients used), thereby it does not qualify to be categorised as 'processed cheese' or a type of cheese," the AAAR highlighted. It also added that pizza topping would merit classification as 'food preparation'.
What does the Pizza tax ruling say?
Different GST is levied on a pizza sold and eaten in a restaurant, pizza delivered at home, pizza base and the pizza toppings.
The GST rates on pizzas are calculated based on the preparation of it and method of selling the food item.
If you go by the new GST rules, it means that if you buy and eat a pizza at a restaurant, you need to pay 5% GST.
If a pizza is delivered at home, then a GST of 18% is levied. The GST on pizza base which is bought separately is 12%.
How netizens are reacting?
Following the AAAR ruling, pizza started trending big time on social media.
Well, the netizens are absolutely confused regarding the tax ruling on pizzas.
There were also apprehensions among Twitter users that the prices of pizza could go up.
Some also reacted to this with meme and jokes. Check some of the tweets shared here.
Funny tweets on Twitter
One Twitter user wrote, "Oregano toh free rahega na?"
"Say hello to the Topping tax! Net net, quietly eat khichdi at home!," wrote another user.
One user shared a meme by posting a video from a film clip in which it is written, "Seh lenge thoda sa."
It was shared with the caption, "18% GST on Home delivery for Pizza, Le #pizza Lover's."
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