‘Absurdity’: Congress Slams Centre Over Totally different Tax Slabs For Popcorn – News18
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Congress stated that latest information on tax frauds uncovered by the Directorate Normal of GST Intelligence (DGGI) reveal GST evasion of Rs 2.01 lakh crore in FY24.
Congress chief Jairam Ramesh (PTI File)
The Congress Sunday stated the “absurdity” of three completely different tax slabs for popcorn underneath GST solely brings to mild the rising complexity of the system and requested whether or not the Modi authorities will present the braveness to launch a whole overhaul for instituting a GST 2.0.
Congress normal secretary in-charge communications Jairam Ramesh additionally claimed GST evasion is important, enter tax credit score fraud is frequent, and the variety of bogus corporations set as much as “recreation” the GST system runs into hundreds.
“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 situation: the rising complexity of a system that was speculated 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 ’recreation’ the GST system runs into hundreds.
“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 Normal of GST Intelligence (DGGI) reveal GST evasion of Rs 2.01 lakh crore in FY24.
“With the Union Finances now simply 40 days away, will the PM and FM summon the braveness to launch a whole overhaul and institute a GST 2.0?” Ramesh requested.
GST Council on Saturday agreed to situation a clarification on taxation of popcorn, saying that pre-packed and labelled ready-to-eat snacks will entice a 12 per cent tax whereas an 18 per cent GST might be levied whether it is caramelised.
There isn’t a change within the tax price of popcorn and the GST Council has solely agreed that the Central Board of Oblique Taxes and Customs (CBIC) will situation a round clarifying the present taxation regime of popcorn.
’Prepared-to-eat popcorn’, which is blended with salt and spices, and has the important character of namkeens at present attracts a 5 per cent GST if it’s not pre-packaged and labelled.
Whether it is equipped as pre-packaged and labelled, a 12 per cent GST is levied.
Nonetheless, when popcorn is blended with sugar (caramel popcorn), its important character modifications to that of a sugar confectionary, and would due to this fact be classifiable underneath HS 1704 90 90 and entice an 18 per cent GST, as per the clarification.
(This story has not been edited by News18 workers and is revealed from a syndicated information company feed – PTI)
