Donuts Now Hit by ‘GSTitis’ After Popcorn, Jairam Ramesh's Jab

The Congress party took a fresh jab at the government’s GST regime on Saturday, dubbing it “GSTitis” and pointing to donuts as the latest victim after popcorn. The attack came in response to a Rs 100 crore tax notice issued to Singapore-based chain Mad Over Donuts, accused of misclassifying its business as a restaurant service (taxed at 5%) instead of a bakery (18%). Congress leader Jairam Ramesh highlighted the case on X, sarcastically noting, “After popcorn, it’s now donuts’ turn to catch GSTitis.”

With the issue now before the Bombay High Court, Ramesh questioned the government’s “ease of doing business” claims, arguing it underscores the urgent need for a GST 2.0 overhaul. The party has long criticized the current GST framework’s complexity, exemplified last December when it mocked the three-tier tax slabs for popcorn—5%, 12%, and 18%—as absurdly convoluted.

The Congress has pushed for a streamlined GST since its 2024 Lok Sabha manifesto, envisioning a “Good and Simple Tax” that reduces punitive measures and simplifies compliance. Ramesh reiterated this commitment, contrasting it with Finance Minister Nirmala Sitharaman’s recent assurance of lower rates, which the party deems insufficient without broader reform.

The donut tax row reignites debate over GST’s implementation, with businesses and opposition alike decrying its intricacies. As India’s economic policies face scrutiny, Congress insists a radical reset—not mere tweaks—is essential to cure the system’s chronic ailments.