The Congress has once again criticized the government's GST policy, this time over a ₹100 crore tax notice issued to Singapore-based donut chain Mad Over Donuts. The opposition party accused the government of creating unnecessary tax complications, calling for a simplified GST 2.0 to ease business operations.

Congress general secretary Jairam Ramesh, taking to X, remarked, "After popcorn, it is now the turn of donuts to get afflicted by GSTitis." His comments came in response to reports that Mad Over Donuts allegedly misclassified its business, paying 5% GST as a restaurant service instead of the 18% tax rate on bakery items.

Congress Pushes for GST 2.0

The matter is now before the Bombay High Court, but Congress insists that the "ease of doing business" is being hampered by the complex GST structure. "This is why GST 2.0 is so urgent," Ramesh asserted.

In December, Congress had slammed the "absurdity" of three different tax slabs on popcorn, arguing that the GST system had become overly complex. With Finance Minister Nirmala Sitharaman recently suggesting further GST rate reductions, Congress has reiterated that any GST reforms must be comprehensive, not just a minor rate cut.

"We had proposed GST 2.0 – a truly 'Good and Simple Tax' – in our 2024 manifesto, and we remain committed to that vision," Ramesh added.