Congress asks: After popcorn, now donuts?

New Delhi: The Congress on Saturday criticised the government over the implementation of differential GST rates, remarking that after popcorn, donuts have now become victims of "GSTitis".

Congress general secretary in-charge of communications, Jairam Ramesh, referred to a media report on X that stated the Singapore-based chain Mad Over Donuts has received a Rs 100 crore tax notice. The company is accused of misclassifying its business by paying 5 percent GST, claiming it as a restaurant service, instead of the 18 percent tax applicable to bakery items.

"After popcorn, it is now the turn of donuts to get afflicted by GSTitis," Ramesh posted on X.

Criticism of 'Ease of Doing Business'

Highlighting that the issue is now before the Bombay High Court, Ramesh commented on the government’s claims regarding business reforms. "So much for 'ease of doing business'," he remarked. Emphasising the need for reforms, he added, "This is why GST 2.0 is so urgent."

Congress' call for GST overhaul

In December last year, Congress had criticised the GST structure, particularly the existence of three different tax slabs for popcorn. The party argued that such complexities expose the growing inefficiencies of the system. It also questioned whether the Modi government would undertake a complete overhaul to introduce a reformed GST 2.0.

With Finance Minister Nirmala Sitharaman stating that GST rates would be further reduced, Congress asserted last Sunday that changes should go beyond mere rate reductions. The party called for a "radically simplified and less punitive GST 2.0".

Ramesh reiterated that Congress had proposed a GST 2.0—designed as a "Good and Simple Tax"—in its 2024 Lok Sabha election manifesto and remains committed to that vision.

PTI