Congress taunts the government; Now uproar over tax notice, donuts are at risk of GST

The Congress on Saturday took a dig at the government for charging different rates of GST. The party accused that after popcorn, now even donuts are also at risk of GST. Congress General Secretary and Communication Incharge Jairam Ramesh cited a media report on X, which said that Singapore-based chain 'Mad Over Donuts' has been sent a notice of Rs 100 crore for misrepresenting their business and not paying five percent GST.

Jairam Ramesh wrote on 'X', 'After popcorn, now donuts are also being affected by GST. 'Mad Over Donuts' has been sent a tax notice of ₹ 100 crore. This brand famous for donuts is accused of misclassifying its business and paying 5% GST on donuts (by calling it a restaurant service), while 18% tax is applicable on bakery products. This matter has now reached the Bombay High Court. This is the reality of 'ease of doing business'. This is why the need for GST 2.0 has become even more. '

The company claimed that it is a restaurant service, while an 18 percent tax is being paid on bakery items.

In December last year, Congress said that the absurd arrangement of three different tax slabs for popcorn under GST only highlights the increasing complexity of the system. The party had asked whether the Modi government would show the courage to initiate changes to implement GST 2.0. On this, Finance Minister Nirmala Sitharaman had said that GST rates would be further reduced.

Earlier, the Congress had said last Sunday that any change in tax should be more comprehensive than just a rate reduction. The party stressed the need for a fundamentally simpler and less punitive GST 2.0.

Ramesh said that his party had envisaged a truly GST 2.0 'good and simple tax' in its manifesto for the 2024 Lok Sabha elections. The party is still committed to its promise.