‘Absurd’: Congress slams Modi authorities over completely different tax slabs for popcorn

The Congress on Sunday slammed the Narendra Modi authorities over the “absurdity” of three completely different GST slabs for popcorn, and underlined the rising complexity of the system that was promised to be an easier tax regime.

The opposition social gathering, that had boycotted the inauguration of the Items and Providers Tax (GST) regime in 2017, additionally talked about how the loopholes in a flawed GST system are being exploited for enormous tax evasion.

In a social media submit on Sunday, Congress common secretary Jairam Ramesh stated that GST evasion is important, enter tax credit score fraud is frequent and the variety of bogus corporations set as much as sport the GST system runs into 1000’s.

“The absurdity of three completely different tax slabs for popcorn underneath GST, which has unleashed a tsunami of memes on social media, solely brings to mild a deeper problem: the rising complexity of a system that was presupposed to be a Good and Easy Tax,” he stated in a submit on X.

“GST evasion is important, enter tax credit score fraud is frequent, and the variety of bogus corporations set as much as ‘sport’ the GST system runs into 1000’s.

“Monitoring of provide chains is weak, the registration course of is flawed, benefits are being taken of loopholes in turnover exemptions, compliance necessities are nonetheless cumbersome, and misclassification of products is frequent,” Ramesh stated.

He stated the latest information on tax frauds uncovered by the Directorate Basic of GST Intelligence (DGGI) reveal GST evasion of Rs 2.01 lakh crore in FY24.

“With the Union Price range now simply 40 days away, will the PM and FM summon the braveness to launch an entire overhaul and institute a GST 2.0?” Ramesh requested.