# Papad Khar attracts 18% GST, says Gujarat AAR 2026-08-13T16:44:24+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Gujarat Authority for Advance Rulings (AAR) has ruled that Papad Khar, a key ingredient used in making papads, will attract an 18 per cent GST. This comes despite the finished product, papad, being exempt from GST. The applicant, Rajkot-based Sardar Chemical Industries, argued that since papad is exempt, its raw materials should receive similar or preferential treatment. The AAR rejected this, stating that GST classification for inputs and final products is independent and determined by their own HSN codes, not by supply-chain position. It also declined to classify Papad Khar as common salt at 5 per cent GST or as a prepared food additive. Chemically a mixture of sodium carbonate and sodium bicarbonate, Papad Khar is used to give crispiness and shelf life to papads. The ruling clarifies that there is no automatic exemption or lower rate for raw materials just because the end product is tax-free. The AAR noted that the government sets GST rates based on economic policies and GST Council recommendations. Papad Khar, also known as saji khar, is traditionally used in Indian cuisine. ## Coverage - thehindubusinessline.com Tags: Advance Ruling, Food ingredients, GST, Gujarat AAR, Papad Khar, Tax classification Canonical: https://indianopinion.org/papad-khar-attracts-18-gst-says-gujarat-aar/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/papad-khar-attracts-18-gst-says-gujarat-aar/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.