A tax on an Indian snack, banana fritters, draws criticism

The Indian government's Goods and Services Tax (GST) Council recently imposed a 5% tax on popcorn and other popular snacks, which has been largely criticized on social media.

An 18% tax was levied on banana fritters, a popular snack of the South Indian State of Kerala, also widely available in the GCC.

The Bakers Association Kerala (BAKE) representing small and Medium bakery entrepreneurs said that even other local snacks have been taxed because of different ingredients used to prepare them following varied procedures based on the Harmonized System of Nomenclature (HSN).

All these food categories have their HSN codes, which signify the amount of tax levied on them.

India’s GST Council determines the percentage of tax rates for each HSN code. Though the World Customs Organisation regulates specific tax amounts for these codes, countries can have their particular rates as well.

The Goods and Services Tax (GST) is a single, indirect tax implemented in India to create a unified taxation system nationwide. The idea behind GST is to replace the multiple layers of taxes (like state and central indirect taxes) and make it simple for businesses and consumers with one tax (GST).