After popcorn, doughnuts hit by ‘GSTitis’: Congress

Jairam Ramesh

The Congress on Saturday took a swipe at the government over its implementation of differential GST rates, saying that after popcorn, it is now the turn of doughnuts to get afflicted by "GSTitis".

Congress general secretary in-charge communications Jairam Ramesh cited a media report on X which stated that Singapore-based chain Mad Over Donuts is facing a Rs 100 crore tax notice for allegedly misclassifying its business and paying five per cent GST, claiming it is a restaurant service, as opposed to paying 18 per cent tax on bakery items.

"After popcorn, it is now the turn of donuts to get afflicted by GSTitis [sic]," he posted on X. Noting that the matter is now in the Bombay HC, the Congress leader said so much for "ease of doing business". "This is why GST 2.0 is so urgent," Ramesh asserted.

The Congress had said the "absurdity"of three different tax slabs for popcorn under GST only brings to light the growing complexity of the system and asked whether the Modi government will show the courage to launch a complete overhaul for instituting a GST 2.0.

With Finance Minister Nirmala Sitharaman asserting that the GST rates will come down further, the Congress last Sunday said any changes in the tax must be more comprehensive than a mere rate reduction and stressed the need for a radically simplified and less punitive GST 2.0.

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