'Since I went hard at FM...': India has lower GST on food compared to Australia, author's post sparks heated debate

Arun Krishnan, author of The Battle of Vathapi Trilogy, triggered a fiery debate on Wednesday after he compared the Goods and Services Tax (GST) on foods in India and Australia. Sharing a bill from his trip to Australia, Krishnan noted that the country levies a 10% GST, while food in India is taxed at a lower rate of 5%. 

"So, GST in Australia is 10%. We pay 5% for food in India," Krishnan tweeted, adding, "Since I went hard at the FM earlier this week, just putting this out as thanks!"

His comment comes days after Finance Minister Nirmala Sitharaman faced criticism over 18% GST on caramelised popcorn. Krishnan had earlier expressed frustration over such rate changes, questioning whether bureaucrats were "deliberately sabotaging" the finance minister. He argued that public dissatisfaction stemmed less from the tax itself and more from the minimal benefits such changes offered. 

"People are upset about the whole popcorn issue," Krishnan had tweeted. "Not because it must not be taxed differentially but because the upside is so minimal that one must ask if it is worth doing this. And for the FM to spend time explaining this is just bizarre."

Krishnan's observation on India's lower tax rates drew mixed reactions on social media, with some users highlighting the benefits Australians receive in return for higher taxes, such as better infrastructure, clean cities, and robust public services. 

"I hope you must have seen the road, infra, water, air, and a lot more there that people get to live in while paying that 10%," remarked Yatharth Mishra, a social media user. In response, Krishnan said, "We should hold our municipal corporations and state governments accountable for those."

Another user, Visvanathan, pointed out that Australia's flat 10% GST is simpler compared to India's tiered system of 5%, 12%, 18%, and 28%. "Let India implement this (10%) rate, people will accept," he suggested.

However, Krishnan countered, saying such a move would likely provoke criticism from socialists. "If the government did that, the socialists would complain about Ambani, Adani, and the common man paying the same GST on goods!" he quipped.

Some users argued that the simplicity of Australia's GST system reduces confusion. "The thing is, it is almost a flat rate in Australia. Not litigating between caramel and salted or milk vs Mercedes. Pay the rate, move on," wrote a user. 

Others pointed out the broader context of taxation, with one commenter stating, "All developed countries have more than 30% tax on FMCG. India has an average of 18% GST on FMCG goods, while sugary drinks in Dubai have a 50% tax." 

Krishnan acknowledged these points but reiterated that amenities like public services and infrastructure primarily fall under state and local government jurisdictions in India.