Donuts tax: The Congress has targeted the central government over different rates of GST. Congress General Secretary Jairam Ramesh said on Saturday (March 15) that after popcorn, now ‘donut’ is also seeing the impact of GST. Questioning the policies of the government, he said that the country now needs ‘GST 2.0’. This statement has come at a time when many business institutions are worried about tax and its effect is also visible on the market.
Citing a media report, Ramesh said that a tax notice of Rs 100 crore has been sent to the famous donut chain ‘Madon Over Donuts’ of Singapore. This notice was given because the company wrongly classified its business and paid 5% GST while 18% tax is levied on bakery products. Due to this, the company got outstanding tax outstanding. Now this matter has reached the Mumbai High Court where a legal battle is going on.
100 crore notice even after 5% tax on donut
Explain that donut is a sweet and ring -shaped snack that is usually decorated with chocolate, icing, powder sugar or fruit. It is quite popular worldwide. Controversy has arisen in India because due to the difference in GST rates, businessmen have to pay more taxes. Many times it is not clear in which tax slab a product should be kept. This is the reason that ‘Madon over donuts’ received a notice of Rs 100 crore even after paying 5% tax.
Congress’ Tanj – ‘Ease of Doing Business’ is just one slogan
Jairam Ramesh took a sarcasm at the government and said that this whole matter shows what is the reality of ‘Ease of Doing Business’. The government uses this slogan, but in reality traders are facing unnecessary problems. Ramesh said that there are many discrepancies in the tax system and hence the need for GST 2.0 is felt so that all traders can get equal opportunity and relief.
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