GST popcorn indicative of bigger issue
The GST hair splitting over Popcorn is but a symbol of how theGovt has spectacularly failed in taming the bureaucracy. In 2014 when this Govt came to power they promised to make simpler laws. And they did start well. But after a couple of years the babus regained control. Since then it has been downhill all the way.
Does no one in Govt realise how ridiculous such decision making looks? And all for what? Is caramel popcorn going to generate an additional ₹10000 crore GST over salted popcorn? What about the hassle of enforcing and collecting this difference? Imagine the harassment that will be unleashed on theatre owners and others by GST officials on this absurdity. Imagine the litigation that could ensue.
With the economy running into rough weather the Govt should be doing everything to make business and trade easier. They should be looking to put as much money in the hands of the people as possible.
Instead they are trying to squeeze every extra rupee they can. So that more freebies can be given to get votes.
Make no mistake. The Opposition State Governments that are not opposing this madness are equally culpable. They think they can blame the Centre and get away. This won't work for long. People will see through the double game they are playing.
As 2025 approaches, India is at a depressing place. An awful Govt with an equally awful Opposition is not a good place to be. more
Does no one in Govt realise how ridiculous such decision making looks? And all for what? Is caramel popcorn going to generate an additional ₹10000 crore GST over salted popcorn? What about the hassle of enforcing and collecting this difference? Imagine the harassment that will be unleashed on theatre owners and others by GST officials on this absurdity. Imagine the litigation that could ensue.
With the economy running into rough weather the Govt should be doing everything to make business and trade easier. They should be looking to put as much money in the hands of the people as possible.
Instead they are trying to squeeze every extra rupee they can. So that more freebies can be given to get votes.
Make no mistake. The Opposition State Governments that are not opposing this madness are equally culpable. They think they can blame the Centre and get away. This won't work for long. People will see through the double game they are playing.
As 2025 approaches, India is at a depressing place. An awful Govt with an equally awful Opposition is not a good place to be. more
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The present gst council lacks knowledge of common man pains since all these babus and politicians are stomach full and are least bothered with respect to common man.Ideally there should have been some representative from the citizen forum also so that middle and lower class items of consumption gst issues can be resolved at one stroke and not kept on lingering years together similar to the health insurance gst .On one hand govt talks of health and gives ayushman card etc but removing and lowering the gst rates which in the first instance should not be there is taking such a long time .Very inefficient council .They have made gst very ineffective more
9 h ago
Agree with you. Babus are making GST a very complex system to ensure corruption thrives. It is unfortunate that GST Council which is comprised of Union Finance Minister and State Finance Ministers is being taken for a ride. The reason could be that they do not understand that they are being made a fool by Babus or are so preoccupied for maintaining their ministerial position that they have no time for any thing else. To give one example the Input Tax Credit (ITC) system devised by Babus is resulting in massive fraud of more than Rs.2 Lakh Crore which was detected. Why Babus can not be instructed to work out GST rates without ITC to make it a Simple and Good Tax as envisaged by PM. Apart from Popcorn the 18% GST on members contribution towards common expenses is totally unjustified and unconstitutional. When we raised our voice for exemption from 18% GST the monthly contribution limit was raised to 7500 from 5000. It is held by High Courts and Supreme Court that Cooperative Housing Societies are no business entities. more
10 h ago
Ashakanta, I beg to differ with you. Ruchika has a very valid point - that excessive hair splitting is not conducive to simpler laws and ease of doing business. "Redistributive justice, innovative revenue strategies" etc can all be accomplished without making silly laws which only increases the costs of doing business - ultimately, we all suffer more
12 h ago
The GST is the simplest indirect tax and charging different tax rates does not make it a complex one but rather a more logical and sensible tax. The taxation should be rational. The problem with most of the Indians is that we bargain for pitty amounts 1. Richshaw puller. Bargain and reduce fare from 30 to 25.
2. Vegetable vendor in the street. We pay 10 rupees for potato worth 12 and save 2 rupees.
3. Bycycle repair. We pay 50 if he asks for 70 for a service.
4. Fruit seller. We pay 60 instead of 70 for one KG of apple.
5. Small kirana shop. We bargain a little
and in all other purchases to save a penny but we do not bargain
1. International schools. We somehow want the school to enroll our child.
2. International food chains such as Pizza Hut and McDonald's. We rather offer tips.
3. Five start hotels stay. We pay tips.
4. Big hospitals. We request the doctor to save the patient at any cost.
5. Disco, Bar, Pubs or Spa. We pay extra tips.
Overall the fact is that we bargain wherever we see a scope of bargaining and where our prestige is not at stake. This is regressive thinking and not a progressive one. I call this a hypocrisy.
In many EU countries, basic or unprocessed food items often attract a lower VAT rate compared to processed or luxury foods. For example:
In the UK, popcorn sold as a ready-to-eat snack may attract the standard VAT rate, while raw, unpopped kernels could be taxed at a lower or zero rate.
In Germany, basic food items are taxed at 7% (reduced rate), but processed or luxury items like caramel popcorn might attract the standard 19%.
States like California may tax caramel popcorn differently from plain popcorn because of its classification as a luxury or prepared food.
Canada:
GST and Provincial Sales Tax (PST): Canada applies GST and/or PST depending on the province.
Food Distinctions: Most basic groceries are zero-rated (no tax), but prepared or ready-to-eat foods, including popcorn, typically attract GST.
Examples: In Alberta, GST is applied to prepared snacks like caramel popcorn, while raw popcorn kernels are exempt. more
2. Vegetable vendor in the street. We pay 10 rupees for potato worth 12 and save 2 rupees.
3. Bycycle repair. We pay 50 if he asks for 70 for a service.
4. Fruit seller. We pay 60 instead of 70 for one KG of apple.
5. Small kirana shop. We bargain a little
and in all other purchases to save a penny but we do not bargain
1. International schools. We somehow want the school to enroll our child.
2. International food chains such as Pizza Hut and McDonald's. We rather offer tips.
3. Five start hotels stay. We pay tips.
4. Big hospitals. We request the doctor to save the patient at any cost.
5. Disco, Bar, Pubs or Spa. We pay extra tips.
Overall the fact is that we bargain wherever we see a scope of bargaining and where our prestige is not at stake. This is regressive thinking and not a progressive one. I call this a hypocrisy.
In many EU countries, basic or unprocessed food items often attract a lower VAT rate compared to processed or luxury foods. For example:
In the UK, popcorn sold as a ready-to-eat snack may attract the standard VAT rate, while raw, unpopped kernels could be taxed at a lower or zero rate.
In Germany, basic food items are taxed at 7% (reduced rate), but processed or luxury items like caramel popcorn might attract the standard 19%.
States like California may tax caramel popcorn differently from plain popcorn because of its classification as a luxury or prepared food.
Canada:
GST and Provincial Sales Tax (PST): Canada applies GST and/or PST depending on the province.
Food Distinctions: Most basic groceries are zero-rated (no tax), but prepared or ready-to-eat foods, including popcorn, typically attract GST.
Examples: In Alberta, GST is applied to prepared snacks like caramel popcorn, while raw popcorn kernels are exempt. more
12 h ago
Labeling both the government and opposition as "awful" is a sweeping generalization that ignores constructive initiatives and democratic processes. Ongoing Reforms: The government has introduced several measures to simplify GST compliance, such as threshold exemptions for small businesses and reduced rates on essential items. Opposition’s Role: While criticism is valid, dismissing the entire opposition disregards its contributions in advocating for policy changes. more
13 h ago
