The recent decision by the Goods and Services Tax (GST) Council to tax popcorn based on its sugar and spice content has triggered widespread criticism, humor, and debate. The move has ignited frustration among India’s middle class, alongside a meme fest that has taken social media by storm.
1. The GST Popcorn Classification
On Saturday, the GST Council clarified that non-branded popcorn mixed with salt and spices would attract a 5% GST. Branded, pre-packaged popcorn will be taxed at 12%, while caramel popcorn, classified as a sugar confectionery, will attract an 18% GST. Finance Minister Nirmala Sitharaman explained that any product with added sugar falls under a different tax category, equating caramel popcorn with traditional sweets or “mithai.”
2. Social Media Outrage and Memes
The decision sparked an immediate response on social media, with users mocking the complex tax structure. Memes targeting the Finance Minister’s explanation captured the frustration of India’s middle class, highlighting concerns about the fairness of the GST system. Critics argued that these lighthearted posts masked deeper anguish about the burden of excessive taxation.
4. Precedents: Bun and Cream Debate
This is not the first instance of GST anomalies creating a stir. Coimbatore hotelier D Srinivasan humorously highlighted that a plain bun is exempt from GST, but a cream bun incurs 12% GST, prompting customers to request the bun and cream separately.
The popcorn tax controversy underscores the challenges of creating a transparent and fair taxation system while balancing revenue generation and consumer interests.
