The 55th Goods and Service Tax (GST) Council meeting was held recently at Jaisalmer, Rajasthan. The meeting was chaired by Nirmala Sitharaman, Union Finance Minister.
After the council, the most trended news on social media was three types of taxes levied on one eatable which is popcorn—5% for unpackaged popcorn, 12% for pre-packaged and 18% for caramelised.
The finance minister explained the reason for changing the tax on caramelised popcorn from 5% to 18%, stating, “When popcorn is mixed with sugar, altering its character to that of a sugar confectionery, it attracts an 18% GST.”
“This (the new GST rates) does not change any tax structure for popcorn sold in cinemas as we sell loose popcorn, which was taxed 5 percent before and now as well. The new GST rates are for the packed / tin sold in grocery stores or modern retail,” said Miraj Cinemas’ managing director, Amit Sharma.
“Complexity is a bureaucrat’s delight and citizens’ nightmare,” K. V Subramanian 17th Chief Economic Advisor wrote on X. He questioned the rationale of the decision which will contribute minimally to tax revenue but inconvenience the citizens
National tragedy
After this news, Arvind, Subramanian, Former Economic Adviser, Government of India noted on social media that “This is a national tragedy, violating the spirit of the Good & Simple Tax the GST was meant to be, the folly is compounded because instead of at least moving in the direction of simplicity we are veering to greater complexity, difficulty of enforcement & just irrationality.”
What is the GST Council?
In India, the GST Council is the responsible body for making recommendations on issues related to the implementation of the Goods and Services Tax (GST). It consists of representatives from the central and state governments and plays a crucial role in shaping the GST framework by deciding on aspects such as tax rates and rules.
