Minutes after the 55th meeting of the Goods and Services Tax (GST) Council concluded in Jaisalmer on Saturday, former Chief Economic Adviser Arvind Subramanian raised sharp concerns over the trajectory of the GST framework.
Labeling the decisions as a “national tragedy,” Subramanian accused policymakers of violating the foundational principles of the “Good & Simple Tax” that GST was meant to embody.
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Taking to X, Subramanian wrote, “This is a national tragedy, violating the spirit of the Good & Simple Tax the GST was meant to be. The folly is compounded because instead of at least moving in the direction of simplicity, we are veering to greater complexity, difficulty of enforcement & just irrationality. Sad.”
His remarks came amid a series of decisions taken at the council meeting, chaired by Finance Minister Nirmala Sitharaman. These included reducing GST on fortified rice from 18% to 5%, exempting gene therapies critical for healthcare, and clarifying exemptions for black pepper and raisins supplied by agriculturists.
Relief was also provided for food meant for free distribution to economically weaker sections, which remains taxed at 5%. However, other announcements, such as taxing caramelized popcorn at 18%, sparked broader discussions about the GST’s increasing complexity and perceived irrationality.
Under the revised framework, pre-packaged salted popcorn attracts a 12% GST, while caramelized variants move to the 18% slab. Subramanian pointed to such changes as evidence of an overly convoluted system. He shared a post outlining the rate disparities.
Other outcomes from the council meeting included exempting peer-to-peer used EV sales from GST and relief for payment aggregators handling transactions below ₹2,000. A decision on taxing food delivery platforms for delivery charges was deferred, and the Group of Ministers on GST rate rationalization received an extension to refine their recommendations.