Pizza loving Indians are not happy after pizza toppings said to attract 18% GST

New Delhi: Pizza to Indians is everything-from yummy too irresistible to 'no one can eat just one', this Italian-comfort food is an emotion to many.

And now the pizza-loving Indians are not happy after a recent ruling that stated pizza toppings should be taxed at a higher rate of 18% as compared to pizza, which is taxed at 5%.

This has now drawn massive ire from many, making pizza become the subject of a heated discussion and finding itself among the top trends on Twitter India on Tuesday.

According to a report by The Economic Times, the GST rates on pizzas are decided on the basis of how they are prepared and where they are sold.

While pizzas prepared and sold at restaurants attract 5% GST, pizza that is home-delivered comes in the 18% GST slab. Pizza base bought separately, however, is taxable at the rate of 12% as per GST norms.

The confusion arose after the Haryana Appellate Authority for Advanced Ruling (AAAR) has stated that pizza topping is not pizza and thus should be classified differently for GST purposes.

The authority stated on 10 March that the preparation method of pizza toppings is different from pizza, and thus should be taxed at 18% in the category of 'food preparation'.

This could complicate the taxation process for many popular food chains and eateries selling pizzas through dine out or takeaway modes.

Twitter users too were left confused after reading about the tax ruling for pizza.

This news drew the ire of several users, who reacted strongly to the news. There were also apprehensions among Twitter users that the prices of pizza could go up. Some also reacted to this with meme and jokes. See some of the tweets below:

Oregano toh free rahega na?🥲🥲#gst #domios #tax #gstonpizza pic.twitter.com/5SKdcWTFj2

— Nationalstonkexc (@Nationalstonkx) March 15, 2022

"This should go down in our history books," wrote one user, while another stated, "Already pizza in restaurant, pizza base, pizza delivered home.. all attract different GST rates. Basically, DO NOT EAT PIZZA!," one user wrote.

"Say hello to the Topping tax!

Eating pizza at a restaurant: 5% GST

When you buy a pizza base: 12% GST

Home delivered pizza: 18% GST

Want topping on the pizza? Pay another 18% GST

Net net, quietly eat khichdi at home!," another user wrote.

Say hello to the Topping tax!

Eating pizza at a restaurant: 5% GST
When you buy a pizza base: 12% GST
Home delivered pizza: 18% GST

Want topping on the pizza? Pay another 18% GST

Net net, quietly eat khichdi at home! https://t.co/kO1mAL28kG

— Shruti Malhotra ‏‎ (@Shruti_Malhotra) March 15, 2022

These different GST rates may lead to a taxation dilemma for pizza brands. The pizza brands are yet to react to the matter.