Popcorn Tax Complexity: Call for GST 2.0 Overhaul

The Congress has criticized the complexity of the current GST system, highlighting three different tax slabs for popcorn. They urge the Modi government to initiate GST 2.0 to tackle issues like evasion, input tax credit fraud, and the creation of bogus companies exploiting system loopholes.

The Congress party has voiced strong concerns over the complexities in the current GST system, especially highlighting the existence of three different tax slabs for popcorn. This situation, they argue, underscores the increasing intricacy of a system initially envisioned as a Good and Simple Tax.

Jairam Ramesh, Congress general secretary in charge of communications, pointed out significant GST evasion and common fraud involving input tax credits. He further mentioned that thousands of bogus companies have been set up to exploit flaws in the GST system.

Recent data reveals a GST evasion of Rs 2.01 lakh crore in FY24. With the Union Budget approaching, there is a call on the government to embark on an overhaul, dubbed GST 2.0, to address these pervasive issues.

(With inputs from agencies.)