Is GST helping, or complicating things?

Is #GST Helping or Just Complicating Things? Popcorn, Parotas, and Priorities!
GST was introduced with the promise of simplifying tax compliance and streamlining India’s economy. Yet, over the years, it feels like we've only moved from confusion to chaos.

Take the latest popcorn drama as an example. The GST Council recently made changes to the tax rate on popcorn, sparking debates and memes. While the move might impact less than 0.1% of GST collections, it seems to be keeping CAs and coders busy. After all, every GST tweak is another opportunity to "upgrade" systems or bill clients for clarifications. See government policies are promoting employment!

Why Does This Keep Happening?
One major reason for the constant rejig is India's diversity—culturally and economically. The same product can have different uses across regions. Consider these examples:
Coconut oil: Is it for cooking or for hair care?
Perk: Is it a wafer or chocolate?
Parotas vs Rotis: Is it ready-to-eat or regular bread?
While these debates make for great headlines, do they deserve so much attention and resources?

Missing the Big Picture
It’s disheartening to see so much energy spent on trivial matters while significant issues remain untouched. Imagine the impact of:
Removing GST on health and life insurance, making them more accessible.
Bringing crude oil and alcohol under GST to simplify pricing and boost transparency.
Instead, we're busy classifying popcorn into caramel or salted categories, while the common man buys his popcorn from a roadside vendor who doesn’t even know GST exists!

The Way Forward
We need a GST structure that serves its purpose without causing endless debates:
- Reduce slabs: Move from four to just two slabs for simplicity and better compliance. With GST collections on the rise, it's a good time to rationalize taxation
- Follow the Pareto Principle (80:20): Focus on issues that have a meaningful impact on revenue and the lives of citizens—like decisions on insurance or crude oil—rather than nitpicking smaller items.