GST Rates for Caramel Popcorn Controversially Clarified

Kolkata, West Bengal - 20th March (Alarya News)

The government's recent decision to categorize salted popcorn as taxed at 5% and caramelized popcorn at 18% under the Goods and Services Tax (GST) regime has sparked intense backlash from economists and critics, with many questioning the policymakers' priorities.

Finance Minister Nirmala Sitharaman recently defended the move while stating that products with added sugar are categorized differently for taxation purposes. This stance was backed by her office, which stressed that there was no new tax being imposed but merely a clarification aimed at resolving disputes on GST rates for different types of popcorn.

However, not everyone shares this view. Security analyst Sushant Sareen sharply criticized this differentiation as unnecessary. He lashed out against the policy stating, "India will always remain third world until its bureaucracy turns intelligent and politicians begin to think about how these products can be commercially viable rather than simply following outdated policies."

Sareen claimed that adding an 18% tax on caramelized popcorn could lead businesses to see the new law as 'dead weight'. Furthermore, he argued that the GST regime is not only unclear but also overly complex.

Founder of WeekendInvesting Alok Jain echoed similar views expressing dissatisfaction over the latest clarification. According to him, assigning a different rate for salted versus caramel popcorn was "mindless" and 'unnecessary regulations'.

Both observers believe that policymakers should focus more on easing economic activities and encourage entrepreneurship rather than maintaining out-of-touch legislation.

Government responses Despite intense backlash against this recent decision, no apparent action has yet been taken by the government to revise its stance. Therefore, it can now be observed, whether their policies or reactions lead towards better understanding between consumers, businessmen and our governmental policies.