Congress Leader Calls GST System Overly Complex, Highlights Loopholes and Compliance Issues
New Delhi, December 23: Congress veteran and Rajya Sabha MP Jairam Ramesh has slammed the Goods and Services Tax (GST) Council’s clarification on the three different tax slabs for popcorn, calling the system “absurd and overly complex.”
Taking to X (formerly Twitter), Ramesh pointed out how the GST on popcorn has become a subject of widespread memes and social media humor, highlighting deeper flaws in a tax system initially designed to be “Good and Simple.”
“The absurdity of three different tax slabs for popcorn under GST, which has unleashed a tsunami of memes on social media, highlights a deeper issue: the growing complexity of a system that was supposed to be a Good and Simple Tax,” Ramesh posted.
GST Council’s Clarification on Popcorn Tax Slabs
During the GST Council meeting held in Jaisalmer, Rajasthan, the following clarifications were made:
- Ready-to-eat popcorn mixed with salt and spices – 5% GST (if not pre-packaged and labelled).
- Pre-packaged and labelled popcorn – 12% GST.
- Popcorn mixed with sugar (e.g., caramel popcorn) – classified under HS 1704 90 90, attracts 18% GST.
The GST Council emphasized that these clarifications were not new tax impositions but aimed at addressing past inconsistencies and settling interpretation disputes arising from varied demands by field units.
Jairam Ramesh Highlights Deeper Issues in GST System
In his post, Ramesh raised concerns about systemic flaws in GST implementation:
- Rampant GST evasion.
- Frequent input tax credit fraud.
- Thousands of bogus companies created to exploit GST loopholes.
- Weak supply chain tracking.
- Flawed registration processes.
- Frequent misclassification of goods.
He criticized the system for its cumbersome compliance requirements and questioned whether the central government leadership — Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman — would consider a complete overhaul to introduce GST 2.0.
“With the Union Budget less than 40 days away, will the Prime Minister and Finance Minister undertake a complete overhaul and implement a GST 2.0?” Ramesh asked.
The remarks have sparked fresh debates on the complexity of GST structures and the need for streamlined tax policies to prevent misinterpretation and fraud.
