In the recent 55th GST Council Meeting, a lot of new reforms to the GST laws were made. The particular reform that dealt with the taxation of popcorn caused a lot of social media backlash. In a nutshell, this reform stated that popcorn will be taxed differently based on the sugar content it has, namely:

• 5% for loose popcorn with salt and spices.

• 12% for prepackaged and labeled popcorn

• 18% for caramel popcorn. (The logic behind this was that anything with sugar in it was to be considered sweet, similar to candy, and was to be taxed similarly)

• Other miscellaneous changes included the combo bought at a theatre also having 12% GST applied if the movie ticket had a GST rate of 12%

Since the introduction of GST, it has been mired in controversy, with many critics lambasting it for adding complexity and bureaucratic red tape to an already opaque system. Introduced in July 2017,  through the implementation of the One Hundred and First Amendment to the Constitution of India by the Government of India, GST replaced existing multiple taxes levied by the central and state governments. There was immense contention during its initial implementation due to the prevailing belief that the government was trying to merely rebrand the current taxation system. It was also argued that the GST would increase existing rates on common daily goods while reducing rates on luxury items, and affect many Indians adversely, especially the middle, lower middle and poorer income groups.

Many skits, re-enactments and AI/edited photos of Nirmala also became popular. A few examples are shown below:

Mumbai-based comedian, Radha, who goes by Radha – the funny foodie on Instagram, sarcastically mocked the Indian taxing system. Dressed in a saree to match the look of Sitharaman, Radha said in the video: "The GST Council has decided to include organ donation within the purview of GST. Now, anytime anyone donates or receives an organ, the surgery will be taxed at 18% GST." Copying the FM's style of clarification "for media speculations," the comedian said, "If you are in kidney failure, and you receive a kidney from somewhere...your life has been extended. That extension of life is what will come under GST." Radha joked that GST will apply to cornea donation and blood donation. "When the cornea is donated, a blind person receives a gift of sight...and gifts 'humesha se (since forever)' fall under GST. When you donate blood, you are giving something manufactured in your body using food, water, and oxygen, but you don't earn money from it. It will still come under the manufactured goods category. But to reduce the burden on the common man, the central government will take only 12% of the blood donated," she quipped.

In response to the huge social media backlash, the government, in the 55th GST council meeting, was forced to revert the tax on all popcorn in movie theatres back to 5%.

“Popcorn served loose in theatres is classified under ‘restaurant service’ and, as such, will remain taxed at 5%,” remarked an official. This case simply goes to show the power of social media in government policymaking. With the help of the internet and their unity, the Indian population could revert a law that seemed otherwise absurd and hilarious, just going to show the power of the people in a democracy.

Thank you for reading!