Simplify GST
THE core belief behind the introduction of the Goods and Services Tax (GST) was simplification of the tax structure and ensuring better compliance. It defies logic why complexities continue to be the standard practice. The popcorn tax exemplifies the surfeit of irrational and unwarranted slabs across sectors. Salted popcorn attracts 5 per cent GST, pre-packaged and labelled varieties 12 per cent and the caramel option is a luxury at 18 per cent. Ahead of the 55th GST Council meeting, the attention was focused on the much-anticipated rate cut on health and life insurance premiums. The deferment came as a disappointment. A bigger one was the effort put in to clarify how much a consumer ought to pay on this and that popcorn bucket. On show was not only the sanction for misplaced priorities, but the lack of empathy for end-users and businesses.
When a former chief economic adviser terms the popcorn episode a national tragedy and a violation of the spirit of the ‘Good and Simple Tax’ that GST was meant to be, he voices concerns that need to be addressed urgently. The harsh criticism, cutting across ideological lines, indicates the frustration over the slow movement on rationalising GST slabs. It reflects both bureaucratic obduracy and political endorsement of a strategy that apparently hinges on over-taxation and intricacies. Nothing less than a systemic re-arrangement with regard to the imposition of GST would suffice. The citizen's wellbeing has to come first, not the wishlist of the government machinery to fill coffers any which way.
The data cited by the Opposition that reveals GST evasion of Rs 2.01 lakh crore in the 2023-24 financial year warrants scrutiny and course correction. Structural complexities only derail enforcement. Holding on to the status quo is a problem and not a solution.
