GST on Popcorn: Government’s Tax Formula Triggers Heated Debate
Likewise, it took effect immediately into the applicability of the differential rates, thus resolving the confusion of popcorn tax rates in different states.

GST on Popcorn: The move to tax popcorn by the Centre depending on its sugar content or spicing has evoked an argument between two former government's economic advisers, who have come out questioning the tax system that was introduced in 2017.
The Goods and Services Tax (GST) Council, chaired by the finance minister, and comprising state representatives announced on Saturday that non-branded popcorn would be taxed at five percent for mixtures of salt and spices, twelve percent for pre-packaged and branded popcorn, and eighteen percent for caramel popcorn categorized as sugar confectionery.
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The different rates took effect immediately, thus eliminating confusion regarding differences in popcorn taxation across states.
Justifying the imposition of the tax on caramel popcorn at a rate of 18%, Finance Minister Nirmala Sitharaman stated that all products with added sugar shall be treated differently, concerning taxation.
However, the Sunday announcement soon ignited social media fury, opposition meetings, complaints of most economists, or even some Central government supporters, and others were busy memeing and poking fun at it.
"Complexity is a bureaucrat's delight and citizen's nightmare," India's last Chief Economic Adviser K V S spoke through an X post. He questioned the rationale of the decision he said would contribute meagerly to tax revenues but inconvenience citizens.
His predecessor, Arvind Subramanian, said "The folly is compounded because instead of at least moving in the direction of simplicity we are veering to greater complexity, difficulty of enforcement and just irrationality".
This was one of the memes circulating widely on X: branded "salt caramel" popcorn packet and the comment as to how this would leave the taxman scratching his head calculating the tax rate on it.
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Jairam Ramesh, leader and spokesman of Congress said the "absurdity of three different tax slabs for popcorn under GST...only brings to light a deeper issue that the growing complexity of a system that was supposed to be a Good and Simple Tax".
The finance ministry spokesperson, the GST Council Secretariat, and a spokesperson for the ruling BJP also chose to remain mum and did not respond to requests for comments on the controversy.
In fact, the GST system has had its share of controversies regarding its tax classifications in the past and faced some queries, but none like this.
Previous disputes have ranged from different taxation of chapatis, or unleavened Indian flatbread, in regard to layered flatbreads, dissimilar rates for curd and yogurt under buns and cream versus bun and cream served separately.
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