Dear MEL Topic Readers,
India GST: The ‘cheesy’ row over pizza toppings tax in India
After a historic session of both of the houses of parliament until midnight, India’s Goods and Services Tax, GST, was launched on July 1, 2017. Even though the prime minister described it as a “good and simple tax”, it is practically complicated because of the multiple tax rates, zero, 5%, 12%, 18%, and 28% depending on the item. For example, unpacked food is not taxed. The rate of GST is 18% for soaps but 28% for washing detergents. For movie tickets, the GST is 18% but 28% on tickets over 1000 rupees. But what’s more complicated is the GST on foods. For instance, while there is no GST on conventional milk, 12% GST is taxed on flavored milk products even though most of the ingredient is milk. Also, in a recent court ruling, a pizza company’s mozzarella topping is taxed at 28% even though the GST on cheese is 18% just because the cheese topping contained vegetable oil to enhance the texture and flavor of the pizza. There are so many other cases like these in India. There seems to be a conflict between the logic and practice in India’s GST.
Enjoy reading the article and learning about India’s long-and-still disputed good and simple tax.
https://www.bbc.com/news/world-asia-india-63281037
India GST: The ‘cheesy’ row over pizza toppings tax in India
After a historic session of both of the houses of parliament until midnight, India’s Goods and Services Tax, GST, was launched on July 1, 2017. Even though the prime minister described it as a “good and simple tax”, it is practically complicated because of the multiple tax rates, zero, 5%, 12%, 18%, and 28% depending on the item. For example, unpacked food is not taxed. The rate of GST is 18% for soaps but 28% for washing detergents. For movie tickets, the GST is 18% but 28% on tickets over 1000 rupees. But what’s more complicated is the GST on foods. For instance, while there is no GST on conventional milk, 12% GST is taxed on flavored milk products even though most of the ingredient is milk. Also, in a recent court ruling, a pizza company’s mozzarella topping is taxed at 28% even though the GST on cheese is 18% just because the cheese topping contained vegetable oil to enhance the texture and flavor of the pizza. There are so many other cases like these in India. There seems to be a conflict between the logic and practice in India’s GST.
Enjoy reading the article and learning about India’s long-and-still disputed good and simple tax.
https://www.bbc.com/news/world-asia-india-63281037
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