India’s recent decision to impose different GST rates on popcorn based on its sugar or spice content has ignited widespread criticism and a social media frenzy. The move, which brings three distinct tax slabs for popcorn—5% for non-branded salted or spiced variants, 12% for pre-packaged and branded versions, and 18% for caramel popcorn (categorized as sugar confectionery)—has been described by critics as unnecessarily complex and burdensome.

The government justifies the higher tax on caramel popcorn by citing its sugar content, aligning with broader tax policies on sugar-enriched products. However, the decision has drawn sharp reactions from former Chief Economic Advisers K.V. Subramanian and Arvind Subramanian, who highlighted its minimal revenue impact versus the inconvenience it poses to citizens. Both have called out the growing complexity of the GST system, which was initially introduced as a “Good and Simple Tax.”

Opposition leader Jairam Ramesh also criticized the move, labeling it as emblematic of a more significant issue: the growing intricacy of a tax system that was meant to simplify compliance and enforcement.

This is not the first time India’s GST classifications have sparked debates. Previous controversies include differential tax rates for chapatis versus layered flatbreads, yogurt versus curd, and even cream buns versus buns served with cream separately.

The social media backlash includes memes and posts questioning the practicality of such distinctions. One viral post humorously speculated on the tax implications for a branded “salt caramel” popcorn packet, illustrating the confusion this policy may cause.

The Finance Ministry and GST Council have yet to respond to the growing criticism. Meanwhile, this latest controversy has reignited broader concerns about India’s tax regime’s efficiency, simplicity, and fairness.

Netizens Troll GST Popcorn Tax: Memes Highlight Complexity and Confusion