Social media was abuzz with witty comments after the GST Council, led by Union Finance Minister Nirmala Sitharaman, introduced differentiated tax rates for popcorn.
Congress has criticised the government for the growing complexity of the GST system and said differing tax rates on popcorn has sparked confusion. It has called for a comprehensive overhaul to address 'widespread evasion and fraud'.
Social media was abuzz with witty comments after the GST Council, led by Union Finance Minister Nirmala Sitharaman, introduced differentiated tax rates for popcorn.
The council decided that ready-to-eat, pre-packed popcorn mixed with salt and spices would be taxed at 12%, while caramelised popcorn would attract a higher rate of 18%. The decision sparked widespread discussion, with users on social media making light of the complexity in the new GST structure.
The Congress has fiercely reacted to Union Finance Minister Nirmala Sitharaman바카라s remarks on the different tax slabs for popcorn under the Goods and Services Tax (GST), calling it an example of 바카라absurdity바카라 and 바카라complexity바카라.
The principal Opposition party lashed out at the government바카라s handling of the tax system and coming up with three different tax slabs for popcorn under GST.
Congress General Secretary Jairam Ramesh took to his 바카라X바카라 account and wrote, 바카라The absurdity of three different tax slabs for popcorn under GST, which has unleashed a tsunami of memes on social media, only brings to light a deeper issue: the growing complexity of a system that was supposed to be a Good and Simple Tax.바카라
With the Union Budget just 40 days away, Ramesh questioned, 바카라Will the PM and FM summon the courage to launch a complete overhaul and institute a GST 2.0?바카라
The issue exploded on social media as Sitharaman바카라s explanation of the GST rates triggered a flood of memes and mockery.
The controversy erupted after the 55th GST Council meeting in Jaisalmer, Rajasthan, which was led by Sitharaman. Key decisions were made, during the meeting, on various goods and services 바카라 including the tax slabs for popcorn. Caramelised popcorn, according to the finance minister, would now attract an 18% GST due to its transformation into a sugar confectionery when mixed with sugar.
Meanwhile, experts highlighted ongoing concerns about the GST system, with some pointing out the frequent misclassification of goods, cumbersome compliance requirements, and the exploitation of loopholes in turnover exemptions. Ramesh, a critic of the system, noted that tax evasion continues to be a serious issue, citing recent data from the Directorate General of GST Intelligence (DGGI) that revealed GST evasion amounting to Rs 2.01 lakh crore in FY24.
The Council, however, deferred decisions on the tax rates for life and health insurance premiums and food delivery apps.
In addition to popcorn, the GST Council made several other decisions such as slashing the tax on fortified rice kernels from 18% to 5% and imposing an 18% tax on used electric vehicles sold by businesses based on their margin value. Gene therapy was exempted from GST, while black pepper and raisins supplied by farmers also received an exemption.
바카라When popcorn is mixed with sugar (caramel popcorn), its essential character changes to that of a sugar confectionery, and would therefore attract 18 percent GST,바카라 Sitharaman explained.
She noted that salted and plain popcorn, if supplied unpackaged and unlabeled, would be taxed at 5%, while pre-packed and labeled popcorn would incur a 12% GST.
She also mentioned that in certain states, salted and caramelised popcorn is sold as 바카라namkeen바카라, and hence, its treatment for tax purposes differs.
Sitharaman바카라s clarifications did little to quiet the growing backlash from the Opposition. The Congress continues to argue that the existing GST framework is riddled with flaws. It has led to widespread tax evasion and fraud. The party바카라s leadership has seized the opportunity to demand comprehensive reform and pushed for a GST 2.0 that could simplify the tax regime and ensure better enforcement.
Jairam Ramesh did not stop at popcorn. Painting a grim picture of the state of the entire GST system, he claimed, 바카라GST evasion is significant, input tax credit fraud is common and the number of bogus companies set up to 바카라game바카라 the GST system runs into thousands. Tracking of supply chains is weak, the registration process is flawed, advantages are being taken of loopholes in turnover exemptions, compliance requirements are still cumbersome, and misclassification of goods is frequent.바카라
He added, 바카라Recent data on tax frauds uncovered by the Directorate General of GST Intelligence (DGGI) reveal GST evasion of Rs 2.01 lakh crore in FY24.바카라
With the Union Budget only 40 days away, Ramesh asked, 바카라Will the PM and FM summon the courage to launch a complete overhaul and institute a GST 2.0?바카라
바카라Popcorn바카라 Sparks Debate On Social Media
Social media was abuzz with witty comments after the GST Council, led by Union Finance Minister Nirmala Sitharaman, introduced differentiated tax rates for popcorn. The council decided that ready-to-eat, pre-packed popcorn mixed with salt and spices would be taxed at 12%, while caramelised popcorn would attract a higher rate of 18%. The decision sparked widespread discussion, with users on social media making light of the complexity in the new GST structure.
Meanwhile, experts highlighted ongoing concerns about the GST system, with some pointing out the frequent misclassification of goods, cumbersome compliance requirements, and the exploitation of loopholes in turnover exemptions. Ramesh, a critic of the system, noted that tax evasion continues to be a serious issue, citing recent data from the Directorate General of GST Intelligence (DGGI) that revealed GST evasion amounting to Rs 2.01 lakh crore in FY24.
With the Union Budget just 40 days away, Ramesh questioned, 바카라Will the PM and FM summon the courage to launch a complete overhaul and institute a GST 2.0?바카라
GST Committee on Health Insurance Rate
In other developments, the GST Council formed a group of ministers to closely examine the GST rates applied to health insurance policies. This follows speculation that the council might offer relief to individuals, especially senior citizens, by reducing the GST on health insurance premiums. Currently, both health and life insurance premiums are taxed at 18%.
The council also reviewed a report from the fitment committee on the taxation of life and health insurance premiums. In FY24, the GST collected on health insurance premiums amounted to Rs 8,262.94 crore, while GST from health reinsurance premiums totaled Rs 1,484.36 crore.
The 55th GST Council meeting, which took place at Sushma Swaraj Bhawan in New Delhi, was chaired by Union Finance Minister Nirmala Sitharaman. Key figures such as Union Minister of State for Finance, Chief Ministers, Deputy Chief Ministers, and Finance Ministers of states and Union Territories were also present at the meeting.