‘No GST on papad, whatever shape or name’, CBIC clarifies on Harsh Goenka's tweet

The government’s indirect taxation agency on August 31 clarified that ‘Papad’, irrespective of its shape or name, is exempted from Goods and Services Tax (GST). The Central Board of Indirect Taxes & Customs (CBIC) on Wednesday responded after the chairman of RPG Group conglomerate, Harsh Goenka, on August 31 posted images of square-shaped and round-shaped papad and said in a post that “Did you know that a round papad is exempt from GST and a square papad attracts GST? Can anyone suggest a good chartered accountant who can make me understand the logic?”

However, CBIC replied later saying, “Papad, by whatever name known, is exempt from GST vide Entry No. 96 of GST notification No.2/2017-CT(R). This entry does not distinguish based on the shape of the papad. This notification is available at http://cbic.gov.in.”

CBIC’s clarification came after Goenka’s post about the Indian snack caused a stir on social media with several internet users saying “I'm a CA and here's my logic....when it's round it doesn't attract because we have a one-point tax regime so it keeps going round, and when it's square it goes off the edges.” Another said, "Fiscal laws of our country, often do not have any logic." One of the internet users said, "Sir - logic in tax laws is like a square in a round hole."

Goenka Shares Amusing Post On WFH Vs Work-life Balance

Earlier, while people across the globe are struggling to maintain Work-Life balance amid the era of Work from Home due to the COVID-19 pandemic, Goenka had previously weighed in on the situation by sharing a hilarious image. In a picture-accompanied post, the RPG Chairman said, "Work from Home…exaggerated or true?" The graphic shows two pie charts based on how time is allocated between working in the office and at home. Working from home demonstrated how an employee's time is divided between various activities such as waiting in traffic, eating lunch, drinking coffee, speaking with coworkers, and working. 

IMAGE: Twitter