New Delhi, Mar 15 (PTI) The Congress on Saturday took a swipe at the government over its implementation of differential GST rates, saying that after popcorn, it is now the turn of donuts to get afflicted by "GSTitis".

Congress general secretary in-charge communications Jairam Ramesh cited a media report on X which stated that Singapore-based chain Mad Over Donuts is facing a Rs 100 crore tax notice for allegedly misclassifying its business and paying 5 per cent GST, claiming it is a restaurant service, as opposed to paying 18 per cent tax on bakery items.

"After popcorn, it is now the turn of donuts to get afflicted by GSTitis," he posted on X.

Noting that the matter is now in the Bombay High Court, the Congress leader said so much for "ease of doing business". "This is why GST 2.0 is so urgent," Ramesh asserted.

In December last year, the Congress had said the "absurdity" of three different tax slabs for popcorn under GST only brings to light the growing complexity of the system and asked whether the Modi government will show the courage to launch a complete overhaul for instituting a GST 2.0.

With Finance Minister Nirmala Sitharaman asserting that the GST rates will come down further, the Congress last Sunday said any changes in the tax must be more comprehensive than a mere rate reduction and stressed the need for a radically simplified and less punitive GST 2.0.

Ramesh said his party had envisaged a GST 2.0 -- a truly "Good and Simple Tax" -- in its manifesto for the 2024 Lok Sabha polls and it remains committed to that vision. PTI ASK SKY SKY

GST classification dispute threatens businesses, triggering tax notices and court challenges over differential rates nationwide. GST classification dispute concerns whether a donut chain's supplies qualify as restaurant services or bakery items for differential GST rates, prompting a tax notice and litigation in the Bombay High Court. The core legal issue is classification determining applicable GST rates, with broader commentary linking the case to calls for a simplified 'GST 2.0' to address complexity, enforcement uncertainty, and compliance burdens arising from multiple tax slabs.