NO ONE NATION, ONE POPCORN: GST MUDDLE

Salted to caramelised confusion: Every unnecessary complexity undermines GST's credibility and original purpose

- Srinath Sridharan

The Goods and Services Tax (GST), hailed as a transformative reform for India's fragmented indirect tax system, was envisioned to embody the principle of "One Nation, One Market." Seven years since its launch, however, the GST system has yet to shed its baggage of complexity and operational faux pas. The recent GST Council meeting, instead of addressing pressing demands such as reducing tax rates on life and health insurance premiums, turned its focus to the taxation of popcorn – an issue that exposes the cracks in the system's foundational principles.

The worry is this: From salted debates to caramelised confusion, GST Council meetings seem to have become India's favourite public entertainment – part drama, part comedy, and always leaving taxpayers with a bitter aftertaste.

The Council's recommendation of GST rates—5% for unpackaged salted popcorn, 12% for pre-packaged versions, and 18% for caramelised popcorn—has drawn severe criticism across social media, particularly for its perceived arbitrariness. Social media commentators have mocked the rationale, calling it a reflection of "brainless bureaucracy" that penalises the upgradation of products. While such commentary may veer into hyperbole, it does underline a significant issue: the persistent lack of coherence and predictability in GST's implementation.

In the great Indian tradition of gratitude, we often hear the phrase "desh ka namak khaya hai," symbolising our duty to the nation.