The Goods and Services Tax (GST) rate on Malabar porotta and whole wheat Malabar porotta will remain at 18% for two more months as a Division Bench of the Kerala High Court has stayed a single judge’s order that reduced the tax to 5%.

The Bench consisting of Justices A. Muhamed Mustaque and S. Manu issued the order on an appeal filed by the State government, the Kerala State GST department and others.

The Single Bench had ordered that Malabar porotta and whole wheat Malabar porotta shall attract a GST of 5% treating them as bread on a petition filed by Modern Food Enterprises Pvt. Ltd. The single judge had held that taxing these products at 18% was unjustified.

In its appeal, the State government argued against classifying porotta as a bread item. It argued that porotta was distinct from bread in terms of ingredients, preparation process, and baking methods.