In a significant move under its “Next-Gen GST Reform,” the the 56th GST Council Meeting headed by the Union Finance Minister, Nirmala Sitharaman has announced that all forms of bread, including the popular Kerala Parotta, will now attract 0% GST.
The reform aims to remove ambiguity in the taxation of bread-based products, which had earlier been a point of debate. While traditional breads like plain chapati and roti were exempt from GST, packaged or frozen variants such as parottawere earlier taxed at 5% to 18%, depending on their form and processing.
With this new decision, the government has clarified that parotta, whether frozen, packaged, or freshly prepared, will now be completely GST-free.
Relief for Consumers and Food Businesses
The announcement comes as a major relief for households and small food businesses across South India, where Kerala Parotta is a staple. Restaurants and cloud kitchens that serve parottas as part of their menu will also benefit, as the cost burden on consumers will reduce significantly.
A senior official from the Ministry of Finance said, “The intent behind this reform is to simplify GST compliance and provide relief to everyday consumers. Bread in all its forms, whether it is a sliced loaf, bun, naan, or parotta, will now be treated uniformly under the GST regime.”
From Controversy to Clarity
The taxation of parotta had sparked widespread debate in the past, with many questioning why a staple bread item was taxed differently compared to other forms of bread. Social media campaigns and memes highlighted the issue, eventually pressuring policymakers to reconsider the tax structure.
By bringing Kerala Parotta under the 0% GST bracket, the government has attempted to put an end to the long-standing confusion and criticism.
Industry Reactions
Bakeries, FMCG brands, and restaurant owners have welcomed the move. Food entrepreneurs say this reform will make packaged breads and frozen parottas more affordable and help expand their market. Consumers, especially in Kerala and Tamil Nadu, have expressed joy on social media, hailing it as a “victory for the common man’s bread.”
The Road Ahead
With this reform, the GST Council is expected to continue its work on simplifying the tax framework for food items. Experts suggest that this uniform treatment could serve as a model for resolving other classification disputes under GST.
For now, consumers can enjoy their Kerala Parotta without worrying about taxes – a true “bread for all, tax for none” reform.
Read More: PM Modi Hails ‘Next-Generation GST Reforms,’ Says Common Man Will Benefit
