Caramel Popcorn And Now Kerala’s Favourite Snack ‘Pazhampori’ Falls Prey To 18% GST: GST Rate Rationalisation Becomes India’s Dream

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In a move that has stirred a fresh round of debates and raised eyebrows, Kerala’s beloved street snack ‘pazhampori’ (banana fritters) has come under the radar of the 18% Goods and Services Tax (GST). The addition of this cherished snack to the list of taxable items has drawn comparisons to the recent uproar over 18% GST on caramel popcorn, leaving food lovers and small vendors across the state both shocked and dismayed.

Several local eateries and bakeries selling Pazhamporis have recently received notices from the GST Department, informing them of an apparent increase in GST to 18% and instructing them to comply with the revised rates.

The Bakers Association Kerala (Bake), representing MSME bakeries and allied manufacturers in the state, has raised concerns that various traditional sweetmeats like ‘ada,’ ‘vada,’ ‘unniyappam,’ and ‘kozhukatta’ are subject to differing GST rates due to variations in their ingredients and methods of preparation.

Public Reaction

Kerala’s social media has been ablaze with memes, posts, and heated discussions since the announcement. Many users expressed their displeasure, calling it an unnecessary move that targets the working-class population. “First, it was popcorn, and now pazhampori. What’s next? Will they tax the air we breathe?” one user lamented.

Cultural commentators have also weighed in, arguing that the decision undermines the cultural significance of local snacks like pazhampori. “This is not just about a snack; it’s about preserving traditions and making them accessible to everyone,” said food historian Asha Menon.

GST Rate Rationalisation Becomes India’s Dream

The glaring disparity in GST rates on items like caramel popcorn (18%), normal popcorn (5%), and pazhampori (18%) exposes a glaring inconsistency in India’s taxation policy. Such discrepancies reflect a lack of logic and coherence in how the government categorizes similar products. Caramel popcorn and normal popcorn serve the same purpose as snacks, yet the significant difference in tax rates appears arbitrary. Moreover, traditional delicacies like pazhampori, widely consumed by middle- and low-income groups, being lumped with a high GST rate betrays the government’s lack of sensitivity toward regional culinary culture and affordability. These discrepancies add an unnecessary layer of complexity for small-scale businesses and consumers alike.

This convoluted tax regime not only discourages compliance but also underscores the government’s failure to streamline its policies. By taxing everyday snacks exorbitantly in some cases while offering leniency to others, the GST framework comes across as chaotic and riddled with inequities. Such policy decisions do not reflect the principles of fairness and uniformity, which were promised as core tenets of GST during its implementation. Instead of fostering economic growth, these imbalances alienate smaller players, distort competition, and burden the end consumer. India desperately needs a rationalized GST structure that is both fair and simple to restore public confidence and ease the hardships imposed by inconsistent taxation.

Read More: CBIC Waives Late Fee For GSTR 9C From 2017-18 To 2022-23

Mariya Paliwala
Mariya Paliwalahttps://jurishour.in/
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.

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