Recently, the Finance Ministry’s decision to raise the Goods and Services Tax (GST) on caramel popcorn from 5% to 18%, sparked a storm on social media, going viral under the hashtag #PopcornTax. The discussion started when Union Finance Minister Nirmala Sitharaman clarified that caramel popcorn is being treated differently than traditional popcorn. salty Due to its added sugar content.
Shortly after the announcement, the GST Council made it clear during its 55th meeting that the tax structure for popcorn will remain unchanged. However, the initial news led to a flurry of memes and discussions online, with users playfully speculating about what other items could be subject to GST.
Adding to the hype, content creator Aryan Kataria took to the streets to prank unsuspecting individuals with ridiculous claims about GST. In a video that went viral titled ‘Telling people about strange GST rules’, Kataria approached people discussing on their phones and told them that holding their phones in their right hand would trigger a GST charge. Many were puzzled and complied by shifting their phones to their left hand.
In one memorable moment, Kataria told an auto driver that leaving his shirt unbuttoned would also attract GST. The shocked driver replied: “Accha?” Before hastily buttoning his shirt at Kataria’s suggestion.
The post with the caption, “Saas leta hu 18% GST lag jata hai 🥲🥲🥲,” resonated with many and garnered over 2.2 million views and thousands of likes and comments.
While the video entertained many, it also sparked discussions about the public’s gullibility regarding new tax regulations. One viewer expressed concern, saying: “It makes me really worried that people believe in him,” while another said: “Stop giving ideas to our finance minister.”
Explanation of GST Council
The GST Council clarified in its meeting on December 21 that popcorn will attract three types of GST rates based on its spice blend. Accordingly, ready-to-eat popcorn mixed with salt and spices attracts 5% GST if presented as un-pre-packed and labeled, and 12% GST if served as pre-packaged and labeled. However, when popcorn is mixed with sugar thereby changing its character to sugary sweets, such as caramel popcorn, it attracts 18% GST.
“It has been decided to settle the past issues on.”“as it is and where it is” basis. There is no new imposition of any tax in this regard and it is merely a clarification as some field units were demanding different tax rates on the same thing. Therefore, it is a clarification recommended by the GST Council to settle disputes arising out of interpretation.
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