Chocalate Cake GST: A Crticism On Social Media

The 55th GST Council meeting on December 21, chaired by Finance Minister Nirmala Sitharaman, sparked significant online debate. While decisions on key issues like insurance and food delivery taxes were absent, the focus turned to the complex GST rates on chocolate cakes.

A chart detailing varying tax rates on the same chocolate cake in different scenarios caught public attention. For instance, cakes served in high-tariff hotel restaurants incur an 18% GST, while takeaways from bakeries are taxed at 5%. Similarly, cakes served by caterers at events attract either 5% or 18%, depending on the venue's tariff.

These intricacies prompted widespread criticism. Many users on X mocked the complications, arguing GST was meant to simplify taxes but instead created confusion. Renowned journalist Sucheta Dalal humorously questioned if homemade cakes were taxable. Overall, the debate highlighted frustration over GST compliance burdens for small businesses and inconsistencies in taxation policies.