(MENAFN- Live Mint) Social media erupted with witty remarks after the GST Council, chaired by Finance Minister Nirmala Sitharaman, announced differentiated tax rates for popcorn. According to the council, ready-to-eat popcorn that is pre-packed and mixed with salt and spices will be taxed at 12%, while caramelized popcorn will attract 18%.
“When popcorn is mixed with sugar (caramel popcorn), its essential character changes to that of a sugar confectionery, and would therefore attract 18 percent GST,” the Finance Minister clarified.
The decision sparked a wave of humorous responses online, with users questioning the logic of having separate tax slabs for the same product.
Some users speculated jokingly about potential tax distinctions for drinking water.“What next? GST on drinking water-5% if you sip, 12% if you gulp, and 18% if you spill,” one person quipped.
Others criticized the lack of uniformity in taxation.“Those advocating 'One Nation, One Election' cannot implement a single tax rate for popcorn,” a user commented.
The decision also drew attention to broader concerns over GST rates on essential and everyday items. Another user compared the popcorn taxation to the 18% GST imposed on used vehicles, stating,“Popcorn with 18% GST makes sense since it's a luxury snack, but why the same rate for old cars often purchased by the less privileged?”
Also Read | Capital gains on inherited property: Can higher FMV than stamp duty be used?
The GST Council 's decision came alongside its move to raise the tax on the sale of old and used vehicles from 12% to 18%.
Highlighting other pending decisions, users noted the council's failure to prioritize reducing GST on health and life insurance premiums.“GST on popcorn seems more critical to the government than removing or reducing GST on insurance,” a user remarked.
Also Read | GST Council exempts gene therapy, banks' penal charges from tax
The debate over popcorn taxation also led to sarcastic comparisons. One user referenced a popular tagline, humorously asking,“Kya aapke popcorn mein namak hai?” Meanwhile, others advised buying DIY popcorn to dodge the higher tax, suggesting,“The only way to legally avoid tax on popcorn is to buy ACT II and enjoy it tax-free.”
Also Read | GST Council Meeting Live Updates: FM Sitharaman levies 18% tax on used EVs
Several social media users expressed disappointment in the GST Council , arguing that its focus on minutiae like popcorn taxes overshadowed pressing economic concerns.“Contrast our Finance Minister spending time discussing popcorn GST with foreign FMs debating cryptocurrency reserves,” one critic noted.
MENAFN22122024007365015876ID1109020448
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.