Exclusive | FM Nirmala Sitharaman Reveals GST Lessons Learnt From The Popcorn Controversy

Union Finance Minister Nirmala Sitharaman addressed the long-standing classification disputes concerning various food items, including papad, paratha, pizza, and popcorn. She highlighted how these issues, particularly the "popcorn" classification, had previously led to significant legal challenges and court cases for many years. Sitharaman explained that the council's recent decisions aim to resolve these ambiguities, which had even prompted the Uttar Pradesh government to seek clarification on how to handle such complex tax classifications. The Finance Minister detailed how different tax rates for items like popcorn with chocolate and sugar versus salty popcorn created problems, leading to tax evasion and prolonged legal battles. The new proposals are designed to streamline these classifications, ensuring clarity and reducing litigation for everyday consumer goods. This move is expected to simplify the tax structure and provide much-needed relief to vendors and consumers alike.