GST notice of Rs 100 crore to Madeover Donuts of Singapore, opposition protested but Center accused of stealing tax

Congress Has always surrounded the Central Government on the issue of GST. After this year’s budget, the Congress, which is protesting against the GST imposed on parathas and popcorn, has recently got a new issue and that is the case filed on GST on Donuts.

GSTitis means suffering from GST related disease.

On this subject, Congress General Secretary Jairam Ramesh wrote on the social media platform ‘X’, ‘After popcorn, now GST has also influenced Donuts.’ The Government of India has sent a tax notice of Rs 100 crore to the Singapore company ‘Madon Over Donuts’. Famous for Donuts, this brand is accused of wrongly classifying its business (calling it a restaurant service) and paying only 5% GST on Donuts, while bakery products levy 18% tax. In short, after popcorn, now donuts have also suffered from GSTitis (disease called GST).

Criticism on social media for complexity of taxes

Although the central government has accused the company of tax evasion by showing the wrong classification of business, but Jairam Ramesh wrote a sarcastic criticism of the government’s policies and wrote, “This is the reality of ‘Ease of Doing Business’ in India.” This is the reason that the need for GST 2.0 (implementation of new GST rates) has increased.

Along with this, many social media users have also strongly criticized GST on parathas, popcorn and donuts etc. Many users are saying that the GST structure in India is very complex. The GST imposed on many items is irrational.

Three tax slab opposed for popcorn

Significantly, in December 2024, the Congress said that under GST, the system of three different tax slabs for things like ‘popcorn’ is absurd. This shows how complicated the GST system is. Will the Modi government dare to implement a more simple and low punitive GST 2.0?

The government also promised to cut GST.

At that time Finance Minister Nirmala Sitharaman had said, “GST rates will be reduced further.” Praising the Congress party’s GST plan, Jairam Ramesh said, “His party has imagined ‘good and simple GST’ in its manifesto for the 2024 Lok Sabha elections.” The party is still committed to that promise.

Significantly, the ‘Made Over Donuts’ case is now in the Bombay High Court.